This circular guides the handling of purchase documents for salt from salt producers when determining business costs for income tax purposes. Business entities must prepare a purchase list if there is no invoice and cannot deduct value-added tax.
Scope of application
Provincial Tax Departments; business entities
Key points
- Business entities purchasing salt from households without an invoice must prepare a purchase list according to the guidance at point 2b, Section III, Part B of Circular No. 18/2002/TT-BTC (Point 2 of the Circular)
- Salt products are exempt from value-added tax, so business entities producing salt cannot deduct tax based on the value of the purchase list (Point 3 of the Circular)
🌐 Social impact of this document
- Business entities receive specific guidance on handling purchase documents for salt without invoices to ensure accuracy in expense accounting.
- The seller (salt producer) is not subject to value-added tax on salt products, reducing their financial burden.
❓ Frequently asked questions
What should a business entity do when purchasing salt from salt producers without an invoice?
Must prepare a purchase list according to the guidance at point 2b, Section III, Part B of Circular No. 18/2002/TT-BTC.
Can a business entity producing salt deduct value-added tax?
Cannot deduct tax based on the value of the purchase list because salt products are exempt from value-added tax.
Full text
LETTER
OF THE MINISTRY OF FINANCE NO. 9398 TC/TCT DATED AUGUST 28, 2002
REGARDING DOCUMENTATION FOR PURCHASE OF SALT BY SALT PRODUCERS
WHEN CALCULATING BUSINESS EXPENSES
Dear: Provincial Tax Departments and Municipalities Directly Under the Central Government
Recently, some local tax departments have inquired about handling purchase documentation for salt from salt producers when determining business expenses for corporate income tax purposes. The Ministry of Finance provides the following comments:
Business entities purchasing salt from households engaged in salt production but lacking a sales invoice issued by the seller must prepare a goods receipt list according to point 2b, Section III, Part B of Circular No. 18/2002/TT-BTC as a basis for recording expenses when calculating corporate income tax.
Salt is not subject to value-added tax; therefore, salt-producing businesses are not entitled to deduct taxes based on the value of the goods receipt list.
The Ministry of Finance informs the relevant Tax Departments for their knowledge and implementation.
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