A growing number of Vietnamese businesses subscribe to paid AI services such as OpenAI’s ChatGPT Business Subscription for their operations. A practical question follows: can the document OpenAI issues — usually an international invoice rather than a Vietnamese-form VAT invoice — be used to claim input VAT credit and to book the cost as a deductible expense for corporate income tax (CIT)? Official Letter No. 4664/KHH-QLDN1 dated 28 August 2026 of the Khanh Hoa Provincial Tax Office answers this specific case. Trustlineax summarises it for businesses with similar transactions.
1. Legal basis
- Official Letter No. 4664/KHH-QLDN1 dated 28 August 2026 of the Khanh Hoa Provincial Tax Office.
- Articles 25 and 26 of Decree No. 181/2025/ND-CP dated 1 July 2025 — conditions for input VAT credit (invoices, tax payment documents and non-cash payment documents).
- Clause 5, Article 3 of Decree No. 254/2026/ND-CP dated 30 June 2026 — definition of lawful invoices and documents.
- Article 9 of Decree No. 320/2025/ND-CP dated 15 December 2025 — expenses deductible when determining CIT taxable income.
- Article 31 of Circular No. 89/2026/TT-BTC dated 30 June 2026 — tax declaration and payment by foreign suppliers operating on e-commerce and digital platforms.
2. The facts
A domestic company purchased a ChatGPT Business Subscription from OpenAI OpCo, LLC. Its records consisted only of the invoice issued by OpenAI and bank payment documents; there was no Vietnamese VAT invoice and no document evidencing tax paid on behalf of the foreign party.
According to the centralised tax administration system, OpenAI OpCo, LLC is a foreign supplier without a permanent establishment in Vietnam that has nonetheless registered for tax in Vietnam (tax code 9000013118). Having registered, OpenAI declares tax under Article 31 of Circular No. 89/2026/TT-BTC — that is, the foreign supplier files and pays tax directly with the Vietnamese tax authority, or through an authorised representative.
3. The tax authority’s conclusion
| Item | Outcome | Reason |
|---|---|---|
| Input VAT credit | Not creditable | Only an invoice and bank payment documents were held; no VAT invoice and no document evidencing tax paid on behalf of the foreign party |
| CIT deductible expense | Deductible | Provided the conditions in Article 9 of Decree No. 320/2025/ND-CP are met |
| Foreign contractor withholding | No obligation arises | The foreign supplier has registered and files its own tax in Vietnam under Article 31 of Circular No. 89/2026/TT-BTC |
3.1. Input VAT credit
Under Article 25 of Decree No. 181/2025/ND-CP, to claim an input VAT credit a business must hold a VAT invoice for the goods or services purchased, or a document evidencing VAT paid at the import stage, or a document evidencing VAT paid on behalf of the foreign party under point a, clause 2, Article 14 of the Law on Value Added Tax — including documents evidencing VAT paid at a percentage rate on revenue on behalf of the foreign party.
Because the company held only an invoice and bank payment documents, without a VAT invoice or a document evidencing tax paid on behalf of the foreign party, it does not meet the conditions for an input VAT credit on the ChatGPT Business Subscription cost.
3.2. CIT deductible expense
Although no input VAT credit is available, the company may still book the cost as a deductible expense when determining CIT taxable income, provided the conditions in Article 9 of Decree No. 320/2025/ND-CP are fully met: the expense is actually incurred and related to production and business activities; lawful invoices and documents are held; and non-cash payment documents exist for invoices at or above the prescribed value threshold.
4. Why this differs from ordinary foreign contractor withholding
Notably, the official letter cites Article 31 of Circular No. 89/2026/TT-BTC — the rule for foreign suppliers operating on e-commerce and digital platforms — rather than Article 30, which applies to foreign contractors under the traditional mechanism.
Because OpenAI OpCo, LLC has registered and declares tax directly in Vietnam under that mechanism, the purchaser does not withhold and pay tax on its behalf as it would for an unregistered foreign contractor. But precisely because the foreign supplier’s self-declaration mechanism produces no Vietnamese-form VAT invoice, the purchaser also has no basis to claim an input VAT credit — even though the cost remains deductible for CIT purposes if the conditions are met.
The same principle applies to other foreign platforms registered for tax in Vietnam. See also our article on foreign contractor tax when buying services from foreign suppliers on e-commerce platforms.
5. What businesses should watch when buying foreign AI or software services
- When buying digital services from abroad (AI tools, international SaaS, cloud services), check whether the supplier has registered for tax in Vietnam — the tax code can be looked up on the tax authority’s system. This determines whether any withholding obligation arises.
- If the supplier issues only an international invoice, do not automatically claim an input VAT credit on the cost. This is a common error when booking foreign software expenses.
- Keep the invoice and bank payment documents in full, and ensure the cost genuinely serves production and business activities, so it holds up as a deductible expense at CIT finalisation.
- For larger payments, ensure non-cash payment documents comply with the rules so the expense is not disallowed at finalisation.
- For specific difficulties, contact the managing tax office, as treatment can differ depending on each foreign supplier’s actual tax registration status.
This article was prepared by Trustlineax based on Official Letter No. 4664/KHH-QLDN1 dated 28 August 2026 of the Khanh Hoa Provincial Tax Office, Decree No. 181/2025/ND-CP (Articles 25 and 26), Decree No. 254/2026/ND-CP (clause 5, Article 3), Decree No. 320/2025/ND-CP (Article 9) and Circular No. 89/2026/TT-BTC (Article 31). It reflects the treatment of one specific case and is for information purposes only; businesses should check the actual tax registration status of each foreign supplier. It does not replace tailored tax advice.