💥 Good news for businesses with deferred payments, installment payments, or overdue payments of VND 5 million or more.
Official Letter 5487/CT-CS clarifies one of the most confusing VAT issues in recent years.

🔍 Key Points of Official Letter 5487/CT-CS

✅ 1. If the payment deadline arrives but no non-cash payment evidence is available → the business MUST reverse the VAT input credit

Applicable when:

• Goods/services value is ≥ VND 5,000,000
• Payment is due under the contract but there is no bank transfer or no valid non-cash payment evidence

👉 The business is required to adjust and decrease previously credited VAT input.

🔥 2. After reversal, if the business later makes a valid non-cash payment → VAT input can be CREDITED AGAIN

Eligible when:

• The business completes the bank transfer, or
• Provides valid non-cash payment evidence as defined in Article 26 of Decree 181/2025

👉 The business may re-claim the input VAT amount previously reversed.

📘 Legal Basis

• 📄 Clause 2 Article 14 – VAT Law 2024 (Law 48/2024/QH15)
• 📄 Article 25 – Decree 181/2025 (invoice & tax documentation requirements)
• 📄 Article 26 – Decree 181/2025 (non-cash payment evidence)

💳 11 Accepted Non-Cash Payment Methods (Valid for VAT Input Credit)

These payment methods are recognized as compliant when supported by proper evidence:

1. Bank transfer (❗cash deposits into seller’s account are NOT accepted)
2. Offsetting between goods/services
3. Offsetting loan/borrowing obligations
4. Authorized payment via a legally recognized third party
5. Payment by shares or bonds
6. Remaining amount ≥ VND 5 million paid by bank transfer
7. Payment to the State Treasury in compulsory enforcement cases
8. Installment/deferred payment made by bank transfer on schedule
9. Purchases < VND 5 million per transaction (non-cash payment not required)
10. Employee pays first – company reimburses via bank transfer
11. Multiple purchases in a day totaling ≥ VND 5 million → MUST use non-cash payment

🎯 Practical Meaning for Businesses

• 👍 No loss of VAT credit just because payment was late
• 👍 As long as non-cash payment is made afterwards → VAT can be credited again
• 👍 Businesses must track payment deadlines to avoid forced VAT reversal