Attorney Vu Manh Quynh is the Managing Partner of ECOVIS Vietnam Law, advising international investors on Foreign Direct Investment (FDI), corporate governance, and regulatory compliance in Vietnam.

Overview

For foreign-invested companies in Vietnam, restaurant bills, client entertainment expenses, and F&B service invoices are common business expenses. However, during tax inspections, these invoices may be questioned if the supplier later becomes inactive, high-risk, or fails to complete its tax obligations.

A valid e-invoice is important, but it may not be sufficient by itself. Companies should maintain supporting documents to prove that the transaction was real, business-related, properly approved, and properly paid.

Why F&B Invoices Can Become Tax-Sensitive

F&B expenses often involve business meals, client meetings, supplier discussions, internal management meetings, or investor visits. These are legitimate business activities, but they may become vulnerable during tax review if the company cannot explain the commercial purpose.

The risk is higher where:

• the restaurant or F&B provider later becomes inactive at its registered address;
• the supplier is classified as a tax-risk entity;
• the invoice value is high or repeated frequently;
• the company only keeps the e-invoice without supporting records;
• payment evidence or internal approval is unclear.

Practical Documents to Keep

For each material F&B expense, FDI companies should consider keeping:

• e-invoice;
• payment evidence, preferably bank transfer or corporate card record;
• booking confirmation, if available;
• internal approval or expense claim form;
• attendee names and company names;
• business purpose of the meeting;
• related email, calendar invitation, agenda, or meeting note;
• explanation of how the expense relates to business activities.

Management Message for CFOs and Finance Teams

The key question is not only: “Do we have an invoice?”

The better question is: “Can we prove why this expense was incurred and how it supported the company’s business?”

For FDI companies, especially those reporting to overseas headquarters, documentation discipline helps reduce tax exposure and supports stronger internal governance.