Accounting in Vietnam.
Features of accounting in Vietnam for companies and enterprises with foreign investment.
Different countries have different strict reporting documents, such as invoices, delivery notes, certificates of completed work, and others. When doing accounting in Vietnam, there is only one strict reporting document - VAT INVOICE or HÓA ĐƠN in Vietnamese. Ordinary cash receipts, which in other countries have the status of a reporting document to confirm expenses. In Vietnam they are not.
What are "red invoice" for?
Every company conducting business strives to show as many expenses as possible for the tax authorities. This allows you to reduce the tax base and pay less taxes at the end of the reporting period. "Red invoices" in Vietnam are confirmation of the company's expenses.
For example, your company is celebrating some holiday in a restaurant. After payment, the waiter gives you a cash receipt, however, you cannot use it as proof of expenses. In this case, you need to provide the waiter with information about your company. It should contain the company details, email and telephone number of your accountant. Our company always sends such reminders to its clients. After this, your accountant will receive a document by email that he can accept as company expenses. This document will not be issued in person, everything will be sent exclusively by email.
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Important information: Expenses greater than or equal to VND 20 million (USD 800) must be cleared through the company's bank account. If the amount is less, you can pay from a personal bank account or in cash. But not forgetting to demand a red check.
It’s the same story with the arrival of money. The company has no income until your accountant issues a “red invoices” to the person you are accepting from. At the same time, it doesn’t matter what type of activity you have, the cash flow of Vietnamese companies is formed only this way.
USB tokens are used to issue “red invoices,” just as they are used to submit tax reports. By default, they have a built-in program for processing expenditure documents with strict reporting.
You may also be interested in: What company expenses are taken into account in tax reporting in Vietnam.
The Leadership TSC team understands well the intricacies and details of how accounting records are maintained in Vietnam. Our company serves more than 100 companies with foreign investments in Vietnam, Hanoi, Ho Chi Minh City and other cities, join us!
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