This article will cover the following topics:
- Understanding "Procurement of goods and services using the Invoice Form" correctly
- What specific conditions must a "Goods and Services Purchase List" meet to be completed correctly?
1. What is the practice of purchasing goods and services using a purchase order form?
According to the provisions of Article 6 of Circular No. 78/2014/TT-BTC, as amended and supplemented by Clause 2, Article 6 of Circular No. 119/2014/TT-BTC, as amended and supplemented by Article 1 of Circular No. 151/2014/TT-BTC, and as amended and supplemented by Article 4 of Circular 96/2015/TT-BTC effective from August 6, 2015:
“2.4. Expenses incurred by businesses for purchasing goods and services (without invoices, but permitted to prepare a list of purchased goods and services according to mẫu số 01/TNDN attached to Circular No. 78/2014/TT-BTC) in the following cases:
- Purchase agricultural, forestry, and aquatic products directly from producers and fishermen for sale.
- Purchase handcrafted products made from jute, sedge, bamboo, reeds, leaves, rattan, straw, coconut shells, coconut husks, or recycled materials from agricultural products from artisanal producers who do not directly sell their products;
- Purchase land, rocks, sand, and gravel from households and individuals who directly extract and sell them;
- Buy scrap metal directly from the collectors.
- Purchasing assets and services from households and individuals who do not directly engage in business activities.
- Purchasing goods and services from individuals and household businesses (excluding the cases mentioned above) with revenue below the value-added tax threshold (VND 100 million/year).
So, When a business purchases goods or services falling under the above-mentioned cases, it is permitted to prepare a Goods and Services Purchase List according to the prescribed form and deduct it from input costs when calculating corporate income tax.
2. What is the sample form for the goods and services purchase invoice (Form 01/TNDN)?
The list of purchased goods and services cannot use any arbitrary form but must use the prescribed form 01/TNDN in the following format:
Points to note when preparing a list of purchased goods and services without invoices:
- Based on the actual quantity of items purchased from sellers without invoices, a list should be compiled in chronological order of purchase. Businesses should record all details on the list and compile it monthly.
- The goods purchased as listed in this inventory are based on sales documents between the seller and the buyer, which clearly state the quantity and value of the purchased items, the date of purchase, the address, the ID number of the seller, and the signatures of both the seller and the buyer.
- For businesses with multiple collection points located in different places, each collection point must have its own separate list. The business then compiles a single consolidated list of all the collection points.
3. What specific conditions must a list of purchased goods and services meet?
As mentioned above, the purchase invoice is a document containing information used as a basis for calculating corporate income tax. The buying and selling of goods and services between the business and the seller must be based on the purchase and sale records.
Here is our advice on the necessary documents for a business acquisition:
1. Seller information must be complete, accurate, legal, and verifiable:
- ID card or Citizen Identification Card Legally valid: Businesses must store a legally valid certified copy of the Citizen Identification Card (a legally notarized copy).
- Contact address: Businesses must store the address information of sellers and ensure it is consistent with the "directly producing the product" principle.
- Contact phone number (It should be the seller's own phone number).
- Seller's signature sampleIn the case of authorized sales, collect the corresponding authorized person's documents and obtain the seller's/authorized person's signature sample.
2. Documentation regarding the purchase and sale transaction:
- Sales contract / Delivery record / Goods weighing and counting record signed by the seller.
- A payment receipt/disbursement voucher for the seller, signed by the seller, if payment is made in cash.
- Authorize payment through the bank if payment is made via bank transfer.
3. Documentation proving the seller's direct involvement in the production/catching/harvesting/gathering of the goods.
- Proof of this point can vary widely and depends on the specific circumstances of each case: for example, documents proving ownership of a ship, land, etc.
4. Is it necessary to obtain confirmation from the local authorities for the statement form 01/TNDN?
Currently, regulations regarding the list of goods and services purchased without invoices are implemented according to point 2.4, clause 2, Article 6 of Circular 78/2014/TT-BTC, which stipulates the following regarding the list of goods and services purchased:
"The list of purchased goods and services must be signed by the legal representative or authorized person of the enterprise, who is legally responsible for its accuracy and truthfulness. Businesses purchasing goods and services are allowed to prepare a list of deductible expenses as mentioned above, and are not required to have non-cash payment documents. If the purchase price of goods and services on the list is higher than the market price at the time of purchase, the tax authorities will use the market price of similar or identical goods and services at the time of purchase to determine the deductible expense when calculating taxable income.”
According to the regulations, the list of goods and services purchased (Form 01/TNDN) is not required to have confirmation from the local government.
Answer the question: Why do I often hear purchasing businesses say that they need confirmation from the local authorities?
The reason is the difficulty in determining "the direct production/catching/harvesting by the seller" Therefore, businesses can choose to obtain confirmation from local authorities regarding the seller to enhance the seller's credibility.