Does the dealer have to issue an invoice and calculate the cost? VAT Promotions are a central question that many distributors, especially car and electronics dealerships, are particularly interested in after Decree No. 181/2025/ND-CP Effective from July 1, 2025. Properly defining tax obligations and administrative procedures not only helps businesses comply with the law but also optimizes operating costs and avoids the risks of tax arrears or administrative penalties related to invoices.
Currently, changes in the notification threshold for promotions (no notification required for promotions under VND 100 million, according to Decree 128/2024/ND-CP) and criteria for "eligible promotional services" are causing some confusion for accounting departments. This article will provide a detailed analysis based on the latest legal documents from the Ministry of Finance and the General Department of Taxation to clarify whether dealers are required to issue invoices and calculate VAT when conducting promotions, helping businesses to comply correctly and consistently.
Legal regulations on VAT for promotional goods.
To answer the question of whether dealers are required to issue invoices and calculate VAT when offering promotions, we need to refer to the consolidated regulations on taxation and trade.
Based on the Value Added Tax Law
According to point c, clause 1, Article 7 of the current Value Added Tax Law, the tax calculation mechanism for goods used for promotional purposes is clearly stipulated. The difference lies in whether the program complies with the provisions of the law on commerce.
If the program follows the correct notification/registration procedures with the Department of Industry and Trade, the taxable value is determined to be 0. Conversely, if the legality of the trade promotion activity cannot be proven, the goods will be taxed as gifts or donations. So, does the agent have to issue an invoice and calculate VAT when conducting promotions? The answer is YES, an invoice must be issued, but the taxable value may be 0 or equal to the market price depending on the legal conditions.
New points in Decree No. 181/2025/ND-CP
Decree 181/2025/ND-CP supplements the criteria for invoicing. It's important to note that even if a promotional program has a taxable value of zero, businesses are still obligated to issue invoices for inventory management and tax authority reconciliation purposes.
Are dealers required to issue invoices and calculate VAT when offering promotions?
This is key content that defines the dealer's responsibilities in sales promotion programs.
This applies to promotional activities that comply with commercial law regulations.
When the agent independently implements the program and has completed the notification procedures (if the amount exceeds 100 million VND) or complies with the regulations in Decree 128/2024/ND-CP, the invoice issuance will be carried out as follows:
- Taxable value: Equal to 0.
- Tax rate line: Enter the correct tax rate for the item (8% or 10%), but the tax amount should be 0.
- Invoice contents: Clearly state that the goods are being offered as free promotional items under a specific program.
In this case, the requirement for the dealer to issue invoices and calculate VAT when offering promotions is mandatory in terms of documentation, but it does not result in any tax payable.
Cases of improper promotional activities (Giving away gifts, donations)
If a dealer gives gifts to customers without a plan, without notification, or if the program is not exempt from notification requirements and is still not implemented, the tax authorities will consider it a gift. In that case:
- Taxable value: This is the VAT taxable price of similar or equivalent goods and services at the time of transaction.
- Tax obligations: The dealer is responsible for paying the VAT on that gift.
Therefore, whether dealers are required to issue invoices and calculate VAT during promotions depends closely on the legal documentation of the program.
| Comparison criteria | Legitimate promotional activities (in accordance with the Commercial Law) | Giving away gifts (Not in accordance with the Commercial Law) |
| VAT taxable price | Zero (0) | Market price of equivalent goods |
| VAT invoice | An invoice must be issued. | An invoice must be issued. |
| Tax rate | Tax rate for the item (Tax amount = 0) | Tax rate for the item (Tax payable) |
| Accompanying procedures | Notification/Registration with the Department of Industry and Trade | No commercial procedures required. |
How to issue VAT invoices for dealers during promotional activities.
Below is a technical guide answering the question of how dealers must issue invoices and calculate VAT correctly during promotions according to accounting standards.
For the form of giving goods away free of charge.
The invoice must clearly reflect the nature of the transaction. For example: A car dealership is giving away a complimentary accessories package worth 20 million VND.
- Criterion “Name of goods/services”: Write the accessory name along with the phrase "Promotional item, free of charge as part of the program…".
- "Amount" indicator: Record the actual value of the goods (e.g., 20,000,000 VND).
- The "Taxable Price" indicator: Record as 0.
- The "VAT" indicator: Record as 0.
For the listed price discount option.
If the dealer applies a direct discount on the invoice, the taxable price is the discounted selling price. This is the simplest way to determine whether a dealer is required to issue an invoice and calculate VAT when offering promotions.
Determine the conditions for "Eligible promotional services".“
According to the spirit of Decree 181/2025/ND-CP, a service is considered eligible for a zero-price invoice when:
- Performed by a licensed business operator.
- There is an approved notification/registration file (or the applicant is exempt from notification requirements under the 100 million VND limit).
- There is a clear record of delivery and receipt of promotional items or a list of customers receiving gifts.
Tax risks when dealers conduct promotions improperly.
Many accountants are still confused about whether dealers are required to issue invoices and calculate VAT when offering promotions, leading to serious errors in tax settlement.
Risk of being taxed
Without documentation proving the promotional program, the tax authorities will determine the selling price based on market price. This significantly increases the VAT and corporate income tax costs for the dealer.
Errors in declaring input tax deductions.
The input VAT on goods used for promotional purposes, if properly regulated, is still fully deductible. However, if these goods are reclassified as gifts not used for production or business purposes (according to the strict views of some tax offices), businesses may face difficulties in defending this deductible tax. Therefore, understanding whether the distributor is required to issue invoices and calculate VAT when promoting goods is key to protecting the business's interests.
Violation of regulations regarding electronic invoices.
Failing to issue invoices for promotional items (because they are considered worthless) is a violation of invoicing laws. The penalties for failing to issue invoices when selling goods or providing services are currently very high.
Conclude
Issuing invoices and calculating VAT during promotions requires a deep understanding of both tax law and commercial law. Mastering the regulations on zero tax base prices in Decree 181/2025/ND-CP and the VAT Law will help dealers confidently implement innovative sales policies without worrying about legal risks. From the analysis above, it is clear that invoices are mandatory, but the amount of tax depends on how well the business prepares the necessary documentation.
If your business is still unsure whether dealers need to issue invoices and calculate VAT during promotions, or is having difficulty setting up tax and invoicing control processes, contact MAN – Master Accountant Network immediately. We provide comprehensive solutions including:
- Auditing services: Review and assess tax risks before an inspection by the authorities.
- Tax accounting & Tax Consulting: Detailed instructions on how to create invoices and build valid promotional documents in accordance with the 2026 regulations.
- Tax settlement & Tax reporting: Protecting the best interests of businesses, ensuring that taxes are paid at the lowest possible level and in accordance with the law.
With a team of experienced professionals, MAN is committed to supporting its distributors in optimizing tax management and enhancing their competitiveness in the market.
Service contact information at MAN – Master Accountant Network
- Address: No. 19A, Street 43, Tan Thuan Ward, Ho Chi Minh City
- Mobile/Zalo: 0903 963 163 – 0903 428 622
- Email: man@man.net.vn
Content production by: Mr. Le Hoang Tuyen – Founder & CEO MAN – Master Accountant Network, Vietnamese CPA Auditor with over 30 years of experience in Accounting, Auditing and Financial Consulting.
Answering questions about whether dealers are required to issue invoices and calculate VAT when offering promotions.
Yes. According to Decree 128/2024/ND-CP, the exemption from notification does not invalidate the program. Agents can still apply a tax base price of 0 when issuing invoices.
If the dealer is giving away the product on behalf of the manufacturer, a written authorization or promotional service contract is required. In this case, whether the dealer is required to issue an invoice and calculate VAT for the promotion will depend on the agreement between the two parties (usually the dealer issues an invoice to the customer and an invoice to collect the service fee from the manufacturer).
Yes. Accountants can record sales items on the first line and promotional items on the last line on the same electronic invoice, as long as the unit price and the total amount of the promotional item (which is zero) are clearly separated. If a promotional program costs less than 100 million VND and doesn't require notification, can the tax rate be set to zero?
If the car manufacturer runs a promotion but the dealership is the one giving away the gifts, who issues the invoice?
Is it permissible to combine sales items and promotional items on the same invoice?
