Every year on the occasion of the Mid-Autumn Festival, companies often buy moon cakes to give to customers, partners, or as gifts for employees. So how is the cost of buying moon cakes for giving away accounted for ? Do we have to issue an output invoice ? Can it be included in a valid deductible expense ?
In tday’s article, let’s learn with MISA meInvoice about: processing procedures, documents, accounting… revolving around the case of buying moon cakes as gifts for customers and employees.w to issue invoices and account for the cost of buying moon cakes as gifts for customers and employeesTable of Contents Hide
1. Do I need to issue an invoice when giving moon cakes to customers and employees?
2. Deduct VAT on moon cakes given as gifts to customers and employees
3. Corporate income tax on moon cakes given as gifts to customers, partners and employees
4. Types of documents related to giving, presenting, and donating moon cakes
5. How to account for the cost of moon cakes as gifts
1. Do I need to issue an invoice when giving moon cakes to customers and employees?
According to Clause 7, Article 3 of Circular 26/2015/TT-BTC (Amending and supplementing Article 16 of Circular 39/2014/TT-BTC), the issuance date is specifically stipulated as follows:
“b) Sellers must issue invoices when selling kuwait telegram data goods and services, including cases of goods and services used for promotion or advertising; samples, goods and services used as gifts, exchanges or payments in lieu of wages to employees (except for goods circulated internally or consumed internally to
continue the production process
According to Article 4 of Decree 123/2020/ND-CP issued on October 19, 2020, stipulating the Principles of making, managing telegram bulk message sender and using invoices and documents, it states:
“1. When selling goods or providing services, the seller must issue an invoice to the buyer (including cases of goods and services used for promotion, advertising, samples; goods and services used for giving, presenting, exchanging, paying in lieu of sal job data ary to employees and internal consumption (except for goods circulated internally to continue the production process); exporting goods in the form of loans, lending or returning goods) and must fully record the content as prescribed in Article 10 of this Decree. In case of using electronic invoices, it must follow the standard data format of the
tax authority as prescribed in Article 12 of this Decree.”
According to Official Dispatch No. 47499/CTHN-TTHT dated September 29, 2022 guiding on VAT calculation prices for donated goods, Hanoi Tax Department has the following opinion:
“The Company must issue invoices for goods and services used for giving or donating to customers . The invoices must fully state the content as prescribed in Article 10 of Decree No. 123/2020/ND-CP. The taxable price for goods and services given or donating to the Company shall comply with the instructions in Clause 3, Article 7 of Circular No. 219/2013/TT-BTC dated December 31, 2013 of the Ministry of Finance.”
Official dispatch No. 47499/CTHN-TTHT dated September 29, 2022
Official dispatch No. 47499/CTHN-TTHT dated September 29, 2022 providing guidance on VAT calculation prices for donated goods
Thus, based on the above regulations, in case of buying moon cakes to give to customers, partners or employees in the company, it is necessary to:
Issue output invoices for gift moon cakes as regular goods invoice