Costs for businesses when paying with personal credit cards.

Official document No. 5465/TCT-KK dated November 25, 2016, regarding the deduction of value-added tax for expenses paid using personal credit cards. 

The case of Samsung Electronics Vietnam Co., Ltd. and Samsung Electronics Vietnam Thai Nguyen Co., Ltd. (hereinafter referred to as "Company"The company authorizes individuals who are employees of the company to use their personal credit cards to pay for goods and services from the seller. The company will then reimburse the individual via bank transfer from the company's account registered with the tax authorities to the individual's account.

If this form of payment is specifically stipulated in the Company's financial management regulations or the Company's authorization decision for an individual; and the aforementioned expenses are fully documented with supporting evidence proving that the goods and services were used for the business's production and operation, including: invoices for goods and services bearing the Company's name and tax code; documents related to the Company's authorization for the individual to pay the seller and then pay the Company; documents transferring money from the individual's credit card account to the seller, and documents transferring money from the Company's bank account to the individual, then this form of payment is considered to meet the requirements for non-cash payment documentation, serving as a basis for declaring and deducting input value-added tax and being included as deductible expenses when calculating corporate income tax.

The company is responsible for compiling and maintaining a list of employee personal credit card accounts authorized to pay for goods and services in the aforementioned manner, and providing this list to the competent authorities when necessary.