Purchasing OpenAI's ChatGPT with only an Invoice: input VAT is not creditable, but the expense may still be deductible

On 28 August 2026, the Khanh Hoa Provincial Tax Department issued Official Letter No. 4664/KHH-QLDN1 in response to an enterprise's enquiry on the tax treatment of a ChatGPT Business Subscription purchased from OpenAI OpCo, LLC.

The key point: OpenAI has registered for tax and directly declares and pays tax in Vietnam, so the purchasing enterprise does not withhold or pay tax on OpenAI's behalf and therefore holds no tax payment voucher paid on behalf of the foreign party; meanwhile, the only document received from OpenAI is a commercial invoice, not a VAT invoice. Lacking both documents, input VAT is not creditable, while the expense may still be deductible for CIT purposes if the relevant conditions are met. The same conclusion applies to any enterprise purchasing digital services from foreign suppliers that have registered for tax in Vietnam.

1. Legal basis cited by the tax authority

Conditions for input VAT credit. Under Article 25 of Decree 181/2025/ND-CP dated 1 July 2025, a business establishment must hold a VAT invoice for the goods or services purchased, or a VAT payment voucher at the import stage, or a voucher evidencing VAT paid on behalf of the foreign party pursuant to point a, clause 2, Article 14 of the Law on VAT (including vouchers for VAT paid at a percentage of revenue on behalf of the foreign party). Article 26 of Decree 181/2025/ND-CP further requires non-cash payment documentation.

Lawful invoices and documents. Clause 5, Article 3 of Decree 254/2026/ND-CP dated 30 June 2026 defines lawful invoices and documents as those that comply with the requirements on form and content prescribed in that Decree.

Deductible expenses for CIT. Clause 1, Article 9 of Decree 320/2025/ND-CP dated 15 December 2025 sets out the conditions for an expense to be deductible when determining taxable income for CIT.

Tax declaration and payment by foreign suppliers. Under point a, clause 1, Article 31 of Circular 89/2026/TT-BTC dated 30 June 2026, a foreign supplier declares tax directly with the tax authority or through an authorised entity; the tax return dossier follows item 16 of Appendix I issued with the Circular. If errors or omissions are discovered after the declaration and payment have been completed, the foreign supplier files an amended return for the tax payable arising in Vietnam, also under item 16 of Appendix I.

2. OpenAI has registered for tax directly in Vietnam

According to data in the centralised tax management system, OpenAI OpCo, LLC is an overseas supplier without a permanent establishment in Vietnam that has registered for tax in Vietnam under tax code 9000013118 and declares tax in accordance with Article 31 of Circular 89/2026/TT-BTC. In other words, OpenAI itself declares and pays tax on its revenue arising in Vietnam; Vietnamese enterprises purchasing its services do not withhold or pay tax on its behalf.

3. Conclusion of the Khanh Hoa Provincial Tax Department

Where an enterprise purchases a ChatGPT Business Subscription from OpenAI OpCo, LLC and holds only an invoice and bank payment records (no VAT invoice and no voucher evidencing tax paid on behalf of the foreign party):

• VAT: the input VAT is not eligible for credit under Article 25 of Decree 181/2025/ND-CP.
• CIT: the expense may be treated as deductible if it satisfies the conditions in clause 1, Article 9 of Decree 320/2025/ND-CP.

The tax authority requests that the enterprise review the regulations against its actual circumstances to ensure correct compliance.

Note that the above conclusion applies to foreign suppliers that have registered for tax in Vietnam. Conversely, where a foreign supplier has not registered for tax, the Vietnamese purchasing organisation must withhold, declare and pay foreign contractor tax on the supplier's behalf; in that case, the voucher evidencing VAT paid on behalf of the foreign party is precisely the basis for claiming input VAT credit under Article 25 of Decree 181/2025/ND-CP.

💡 Recommendations for enterprises

1. Review all digital services currently purchased from foreign suppliers (software, cloud, AI, advertising, etc.) and check whether each supplier has registered for tax in Vietnam (look up the "List of registered foreign providers" on the tax authority's e-portal for foreign suppliers: https://etaxvn.gdt.gov.vn/nccnn/Request).
2. For registered suppliers: do not record creditable input VAT on these purchases; recognise the full amount as an expense.
3. Retain sufficient documentation to support deductibility: the invoice, non-cash payment records (mandatory for transactions of VND 5 million or more), the contract or terms of service, and evidence that the service is used for business purposes.
4. For unregistered suppliers: fully perform the obligation to withhold and pay foreign contractor tax on the supplier's behalf so as to obtain the tax payment voucher that supports the input VAT credit.

This newsletter is prepared by Crowe Vietnam for general information purposes only and does not constitute advice on any specific case. Enterprises should refer to the original legal instruments and consult professional advisers before applying the information to their particular circumstances.