On April 1, 2024, the General Department of Taxation issued Circular No. 1326/TCT-CS regarding invoices and documents in cases where insurance companies compensate customers for insurance purchases.
According to insurance regulations:
- For insured individuals who provide invoices for purchasing goods or repair services (invoices bearing the name of the insurance company or the customer when authorized by the insurance company as stipulated, or when customers issue invoices to the insurance company), the insurance company makes payments to the insured based on the corresponding value according to the contract. In such cases, the insurance company is allowed to deduct the corresponding VAT (Value Added Tax) for the insurance compensation paid according to the VAT invoice.
- For insurance compensation amounts exceeding 20 million Vietnamese dong, the insurance company must make payments through a bank.
- For insurance companies listed as co-insurers on the insurance contract, which have already disbursed insurance funds and are recovering compensation amounts from other co-insurers, they should issue invoices in accordance with Article 4, Clause 1 of Decree No. 123/2020/ND-CP dated October 19, 2020, issued by the Government.
