The Official letter No. 2016/TCT-DNL dated 19 June 2013 of GDT in guidance of tax policy for gifts, donations
The Official letter No. 2016/TCT-DNL:
Enterprises are allowed to deduct input VAT of the promotion gifts, donations for their production and business activities
The enterprises which give, offer the promotion gifts, donations to customers must prepare VAT invoices (or sale invoices), on which the full contents of the invoices are written and VAT calculations are the same as invoices preparation of goods and services sale.
The promotion gifts, donations for their production and business activities must be recognized as revenue on basis of the similar prices on the market at the time of giving, offering to determine CIT income.
