Employees on business trips buy airline tickets through e-commerce websites, does the company declare corporate income tax and value added tax?

1. E-commerce website in accordance with the law

Pursuant to the provisions of Clause 8 and Clause 9, Article 3 of Decree 52/2013/ND-CP recognizes the following instructions:

“Article 3. Interpretation of terms

[…]

8. E-commerce website (hereinafter referred to as website) is an electronic information page e-commerce is set up to serve part or all of the process of buying and selling goods or providing services, from displaying and introducing goods and services to entering into contracts, providing services, payments and after-sales services.

9. An e-commerce trading floor is an e-commerce website that allows traders, organizations and individuals other than the website owner to conduct part or all of the process of buying and selling goods and services. services on it.

Exchanges e-commerce  This Decree does not include online securities trading websites.

2. How are websites providing e-commerce services regulated?

According to the provisions in clause 2 Article 25 of Decree 52/2013/ND-CP on websites providing e-commerce services is specifically as follows:

Websites providing e-commerce services are e-commerce websites set up by traders and organizations to provide an environment for other traders, organizations and individuals to conduct commercial activities. Websites providing e-commerce services include all types following:

+ E-commerce trading floor;

+ Online auction website;

+ Online promotion website;

+ Other types of websites regulated by the Ministry of Industry and Trade.

2. Workers on business trips buy airline tickets via e-commerce websites like the company Is it declared as corporate income tax (CIT) and value added tax (VAT)?

The expenses you mentioned are included in deductible expenses when determining income subject to corporate income tax (CIT) if they meet the conditions specified in Article 6 of Circular 78/2014/TT-BTC (amended by Article 4 of Circular 96/2015/TT-BTC) stipulating deductible and non-deductible expenses when determining taxable income tax

“2.9. Expenditures on travel allowances for vacations not in accordance with the provisions of the Labor Code.

Allowances for employees on business trips, travel expenses and accommodation rentals for employees on business trips, if there are complete invoices and documents, are included in deductible expenses when determining taxable income. In case the enterprise has contracted travel expenses, accommodation expenses, and allowances for employees Traveling on business and complying with the financial regulations or internal regulations of the enterprise is included in the deductible expenses for travel, accommodation, and allowances.

In case the enterprise sends employees on business trips (including domestic and foreign business), if there are expenses of 20 million VND or more, the cost of buying air tickets and these expenses are paid by the individual’s bank card is sufficient. The condition is a form of non-cash payment and is included in deductible expenses if the following conditions are met:

– There are appropriate invoices and documents issued by the supplier of goods and services.

– The enterprise has a decision or document to send employees on business trips

– The enterprise’s financial regulations or internal regulations allow employees You are allowed to pay business expenses and buy airline tickets with a bank card issued by the individual who is the cardholder and these expenses are then paid back to the employee by the business.

In case an enterprise purchases airline tickets via an e-commerce website for employees traveling on business to serve the enterprise’s production and business activities, the documents used as a basis for calculating deductible expenses are electronic airline tickets, boarding passes and non-cash payment documents of the enterprise with individuals participating in the transportation journey. In case the enterprise cannot recover the employee’s boarding pass, the documents used as a basis for calculating deductible expenses are electronic air tickets, decisions or documents sending employees on business trips and non-cash payment documents of the enterprise with the individual participating in the transportation journey.

In case an enterprise sends an employee on a business trip (including domestic and foreign business trips), if there is an expense of 20 million VND or more, the cost of buying an airline ticket and these expenses are paid by the individual’s bank card qualifies as a form of non-cash payment and is included in deductible expenses if the following conditions are met:

– Have appropriate invoices and documents issued by the supplier of goods and services.

– The enterprise has a decision or document to send employees on business trips.

– The financial regulations or internal regulations of the enterprise allow employees to pay business expenses and buy airline tickets with a bank card owned by the individual and these expenses are then paid back to the employee by the enterprise.

In case an enterprise purchases airline tickets via an e-commerce website for employees traveling on business to serve the enterprise’s production and business activities, the documents used as a basis for calculating deductible expenses are electronic airline tickets, boarding passes and non-cash payment documents of the enterprise with individuals participating in the transportation journey. In case the enterprise cannot recover the employee’s boarding pass, the documents used as a basis for calculating deductible expenses are electronic air tickets, decisions or documents sending employees on business trips and non-cash payment documents of the enterprise with the individual participating in the transportation journey.

Regarding value added tax (VAT) deduction: please refer to it Official Dispatch 3997/TCT-DNL 2014 Regarding the conditions for deducting Value Added Tax, documents as a basis for calculating deductible expenses when buying airline tickets through the e-commerce website issued by the General Department of Taxation on September 16, 2014: “In case the enterprise sends employees on business trips to serve the production and business activities of the enterprise and assigns the individual to buy the airline ticket himself, pay with an ATM card or credit card in the individual’s name, then return to pay the enterprise if the enterprise has sufficient documents. Documents and documents proving that this expense serves the production and business activities of the enterprise include: air tickets, boarding passes (in case the card is recovered), documents related to the dispatch of employees on business trips with confirmation from the enterprise, regulations of the enterprise allowing employees to pay for business trips with personal cards because the employee sent on business trips is the cardholder and pays back to the enterprise, vouchers of payment of the enterprise’s ticket to the individual who purchased the ticket with proof. From non-cash payments of individuals participating in the transportation journey, the enterprise can declare and deduct input VAT and be included in deductible expenses when calculating corporate income tax. Enterprises are responsible for the legality of the above documents and documents.