Businesses can donate gold and jewelry to customers to carry out sales promotion campaign. However, please note that you must issue invoices according to regulations.

Legal grounds:

• Decree No. 123/2020/ND-CP;
• Official Dispatch No. 78927/CT-TTHT dated December 6, 2017 of the City Tax Department. Hanoi.

Businesses that give gold and jewelry to customers as promotional gifts can calculate the cost of inventory into reasonable deductible expenses when determining corporate income tax and need to issue an invoice when transferring ownership of gold and jewelry to customers. .

Specifically, based on Clause 1, Article 4 of Decree No. 123/2020/ND-CP as follows:

Article 4. Principles for creating, managing and using invoices and documents

1. When selling goods or providing services, the seller must issue an invoice to deliver to the buyer (including cases of goods and services used for promotion, advertising, sample goods; goods and services used for to give, donate, exchange, pay on behalf of wages to employees and for internal consumption (except for goods circulated internally to continue the production process); release goods in the form of loans, borrow or return goods) and must fully record the content as prescribed in Article 10 of this Decree. In case of using electronic invoices, it must follow the tax authority’s standard data format as prescribed in Article 12. This Decree.

According to the above regulations, although goods used as gifts do not generate revenue, businesses still have to issue invoices similar to when selling goods or providing services.

In addition, Official Dispatch No. 78927/CT-TTHT dated December 6, 2017 of the City Tax Department. Hanoi has instructed as follows:

In case the Company… pays VAT according to the deduction method, does not have gold business activities, and purchases processed gold products from organizations that buy, sell, and process gold, silver, and stones in order to give prizes to customers, the Company must issue a VAT invoice, etc.

Note: For gift gold invoices, additional details can be written in the name of the goods: “(Gifted goods no money collected)”