Problem: Are advertising costs on Google and Facebook included in the cost of the business? If yes then What are profiles?
In business activities, the investment of Google and Facebook advertising costs becomes a regular expense of many businesses. However, Google and Facebook only accept payments through 2 of Visa / Mastercard and do not issue VAT invoices to users.
So, are these expenses included in the reasonable expenses? What are profiles?
Google and Facebook advertising costs are deductible expenses
According to Circular 78 / 2014 / TT-BTC In Article 6, the 1 Clause stipulates deductible and non-deductible expenses when determining taxable income as follows:
"Except for the non-deductible expenses specified in the 1 Article of this Article, enterprises are allowed to deduct all expenses if they fully meet the following conditions:
a) Actual expenses incurred related to the production and business activities of the enterprise;
b) The expenditures have adequate legal invoices and documents as prescribed by law.
c) If the invoice of purchase of goods or services each time is from VNDUMUMX million or more (prices inclusive of VAT), there must be a voucher of non-cash payment.
Non-cash payment vouchers comply with legal documents on value added tax. ”
According to the above, Advertising costs to sell the company's goods and services, so this is the cost of doing business and is deductible..
But in order for the above expenses to be calculated into deductible expenses, what documents must the enterprise have?
Google and Facebook advertising expenses to be calculated into reasonable expenses need the following documents:
- Regulations of the unit on the purchase of online services, including advertising in accordance with the laws of Vietnam.
- A written proposal from the sales department to advertise to the superior, accompanied by a printout of the terms that the operator / advertising site offers (price, advertising method, payment method
- Documents proving that the business's advertising request has been fulfilled
- Payment voucher from individual's credit card to Google, Facebook; and payment vouchers from corporate accounts to personal credit cards such as: Bank statement with payment order, check, ... of the enterprise proving that the business pays money for the advertisement page
- Declaration and payment documents on behalf of contractor tax before paying Facebook, Google according to regulations.
See more in the official dispatch: 5681 / CT-TTHT dated 17 / 02 / 2017; Official dispatch: 1550 / TCT-CS dated 24 / 04 / 2018
