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.
Key Issue
Many FDI companies in Vietnam record F&B expenses based mainly on e-invoices. This may not be enough during a tax inspection.
If the restaurant or F&B provider later becomes a tax-risk supplier, the buyer may be asked to explain the transaction — even if the meal genuinely occurred.
Business Risk for CFOs and Finance Teams
For CFOs, finance managers, and accounting teams, weak documentation may lead to:
- disallowed deductible expenses;
- denied input VAT;
- additional tax payable;
- late payment interest;
- repeated explanations to tax authorities;
- internal reporting issues with headquarters.
Recommended Evidence File
FDI companies should build a simple evidence file for business meals and client entertainment expenses. For each transaction, retain:
- E-invoice
- Payment proof — bank transfer or corporate card record
- Expense approval — internal authorisation form or manager sign-off
- Business purpose — brief description of the commercial objective
- Attendee list — names and companies of all participants
- Meeting agenda or related email
- Calendar invitation or booking confirmation
- Short internal note explaining the commercial relevance of the expense
Practical Rule
An invoice proves that a document exists. Supporting records help prove that the transaction was real and business-related.
For Vietnamese tax inspections, the combination of both is what protects the company’s deduction and input VAT credit claims — particularly where the supplier’s tax status later becomes unclear.
ECOVIS Advisory
ECOVIS Vietnam Law advises FDI companies on tax inspection readiness, invoice documentation standards, supplier risk review, and compliance file preparation — coordinating between legal, tax, and accounting functions.
Contact Attorney Vu Manh Quynh:
[email protected] | www.ecovislaw.vn
