The TTH advisory team advises international investors on Foreign Direct Investment (FDI), corporate governance, and regulatory compliance in Vietnam.
Part of our guide: FDI Law 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
TTH 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 TTH Advisory Team:
tthservices.info@gmail.com | www.ecovislaw.vn