Question 1:
In 2023, an enterprise signed a contract to purchase accounting software, with the total contract value equally split between a company in Vietnam and its foreign parent company, each party paying 50%. Subsequently, the parent company did not request reimbursement but instead issued an invoice to the subsidiary in Vietnam for services such as software implementation consulting, server rental, training, and store design—equivalent to 50% of the software contract value. The Vietnamese company recorded these expenses under account 242 (long-term prepaid expenses) and allocated them over three years. Is this accounting treatment compliant with current regulations?

Answer:
Recording software purchase costs under account 242 – Long-term prepaid expenses and allocating them over three years is appropriate if the software is expected to generate economic benefits over a three-year period.

• According to Article 47 of Circular No. 200/2014/TT-BTC, long-term prepaid expenses are actual expenditures that span multiple accounting periods and should be gradually allocated into operating costs over time. In this case, if the recorded expenses—such as consulting, server rental, training, and design—serve to implement the software and create long-term economic benefits, then allocating them over three years is legally and accounting-wise justified.

Note: The enterprise must retain all relevant invoices, contracts, and supporting documents to substantiate the legitimacy and reasonableness of these expenses during tax audits.

Legal basis:

• Article 47, Circular No. 200/2014/TT-BTC on corporate accounting regulations.

• Reference: https://thuvienphapluat.vn/.../Thong-tu-200-2014-TT-BTC...

Question 2:
In 2025, a company hosted a wine-tasting event where participants could sample various wines and exchange knowledge about a specific wine brand. Tickets were sold via an intermediary partner (e.g., Takashimaya), who collected payment and issued invoices to customers. At month-end, the organizing company issued a consolidated invoice to the intermediary. The company is considering two invoicing methods:

• Issuing invoices as individual wine servings (e.g., 1 bottle divided into 6 glasses), or

• Issuing invoices as a wine event service (1 ticket equals 1 participation).

Which invoicing method is tax-compliant?

Answer:
The choice of invoicing method should be based on the actual nature of the transaction between the enterprise and the end customers (via the intermediary partner). Specifically:

Option 1 – Invoicing per glass of wine:
If the primary activity is the sale of goods (wine), i.e., ticket holders are essentially purchasing wine (in tasting portions), invoices should be issued as sales of wine by glass. In this case, the company must ensure:

• Proper documentation of the decanting process from bottle to glass;

• A valid business license covering the sale of alcoholic beverages;

• Compliance with applicable taxes: special consumption tax (SCT), VAT, and corporate income tax (CIT).

Option 2 – Invoicing as an event service:
If the essence of the activity is an experience-based wine event (where wine tasting is just a component), invoicing should be done as a service. This is appropriate if:

• The company offers a comprehensive service including event organization and knowledge sharing, not merely wine sales;

• The company is licensed for event organization and product promotion;

• Event-related documents are available, such as agendas, banners, flyers, and guest lists.

Conclusion:
Invoicing as a wine event service is appropriate if the event is experiential and educational in nature. Conversely, if wine is the core offering and the event is essentially a form of sales, invoices should reflect wine sales by serving and comply with relevant tax regulations.

Note: To ensure compliance and transparency during tax finalization, companies must retain all documentation related to the event description, contracts, marketing materials, and guest participation records.

Legal basis:

• Article 5.1, Circular 219/2013/TT-BTC on VAT;

• Circulars 78/2021/TT-BTC and 39/2014/TT-BTC on e-invoices;

• Current Law on Special Consumption Tax (if applicable to wine);

• References:

  • Circular 39/2014/TT-BTC

  • Circular 78/2021/TT-BTC

Question 3:
A company is executing renovation contracts for offices and warehouses in Binh Thanh District, HCMC, and store renovations in District 1, HCMC. These renovation costs are currently recorded as fixed assets under “Buildings and Structures.” Do these assets qualify as fixed assets under current regulations?

Answer:
Whether renovation costs should be capitalized as fixed assets (FAs) or expensed as prepaid costs depends on the nature, value, and future economic benefits of the asset.

a) Case of office and warehouse in Binh Thanh District:

• If the renovation enhances quality, extends useful life, or increases the utility of existing assets, and all four criteria under Article 35 of Circular No. 200/2014/TT-BTC are met, the costs can be capitalized as fixed assets:

  1. Expected to bring future economic benefits;

  2. Cost can be reliably measured;

  3. Useful life of at least 1 year;

  4. Value of at least VND 30 million.

→ These can be recorded as tangible FAs under “Buildings and Structures” and depreciated over the expected useful life (e.g., 10 years).

b) Case of the store in District 1 (in a shopping mall):

• Even if a retail license for alcohol has not yet been obtained, the store has a business cooperation contract and is intended for future commercial use.

• If the renovation value exceeds the regulated threshold and is expected to yield future benefits, and the cost can be reliably measured → the store can also be recorded as a tangible FA, provided the company wants to manage and depreciate the asset accordingly.

Note:
To determine whether to capitalize or expense, the company must:

• Review lease agreements, acceptance minutes, asset handover documents;

• Clearly define usage purpose, operational duration, and apply suitable internal accounting policies.
  If the costs do not meet FA criteria, they may be recorded under long-term prepaid expenses (account 242) and amortized over time.

Legal basis:

• Article 35, Circular 200/2014/TT-BTC: Criteria for recognition of tangible fixed assets;

• Clause 1, Point đ, Article 35: Allows for FA cost increases due to renovations that enhance capacity, extend lifespan, or improve quality.

• Reference: Circular 200/2014/TT-BTC