Whether or not to issue an invoice for giving mooncakes to business partners is a recurring question every year during the 8th lunar month, when accounting departments are busy preparing gifts for clients and partners but are unsure whether this expense requires an electronic invoice. Many businesses still believe that because they don't receive payment from partners, they don't need to issue an invoice. This understanding carries the risk of administrative penalties for invoice violations. This article definitively answers the question of whether or not to issue an invoice for giving mooncakes to business partners based on current legal grounds, and also guides on how to properly issue invoices and the penalties for omissions.
Why is the question of whether or not to issue an invoice when giving mooncakes as gifts to business partners a source of concern for many accountants?
Essentially, mooncakes given as gifts to business partners are an external expense, generating no revenue and no cash flow received from the partner. Because no money is received, many accountants automatically skip the invoicing step, only keeping the input invoice for the mooncakes as a supporting expense document.
This approach is incomplete. The law on electronic invoices and documents does not require "receiving payment" as a basis for invoicing obligation. Therefore, to accurately answer whether giving mooncakes to business partners requires issuing an invoice, businesses need to refer to the original regulations instead of relying on habitual reasoning.
Legal basis for issuing invoices when giving mooncakes as gifts to business partners:
What does Clause 1, Article 4 of Decree 254/2026/ND-CP stipulate?
Clause 1, Article 4 of Decree 254/2026/ND-CP Regarding the principles for creating, managing, and using electronic invoices and documents, the following regulations apply:
When selling goods or providing services, sellers must issue electronic invoices to buyers. This regulation includes cases where goods and services are used for promotions, advertising, or as samples; goods and services used for gifts, donations, exchanges, as payment in lieu of wages for employees, and for internal consumption; and goods exported in the form of loans or borrowings, except for cases where electronic invoices are not required according to Article 7 of this Decree.
Why do gifts and presents still need to be invoiced even though no payment is received?
An invoice is not only a document for receiving money, but also a document recording an economic transaction that has occurred, specifically in this case, the transaction of exporting goods from the business for the purpose of giving or donating.
Electronic invoices must fully and truthfully reflect the content of the economic transaction that occurred, and the seller is legally responsible for the accuracy of the invoice issued.
In other words, even if the partner doesn't pay, the business has transferred ownership of the goods. This is why the answer to whether or not an invoice is required for giving mooncakes as a gift to a partner is always yes, regardless of whether or not a cash flow is generated.
Do I need to issue an invoice when giving mooncakes as gifts to business partners?
Have. According to Clause 1, Article 4 of Decree 254/2026/ND-CP, businesses that purchase mooncakes to give as gifts to partners are still required to issue electronic invoices, even if they do not receive payment from their partners.
This obligation applies to all businesses that give or receive goods as gifts to customers and partners, regardless of the value of the shipment or whether the mooncakes are produced by the business itself or purchased from outside sources.
For businesses that are handling this task for the first time or want to review their processes for this year's Mid-Autumn Festival, it's worth referring to this information. full accounting service This will help standardize all documentation, from the initial recording of input to the issuance of output invoices.
Timing of invoicing when giving mooncakes as gifts to business partners.
After determining whether issuing an invoice is necessary when giving mooncakes as gifts to business partners, the next question is when to issue it.
The general principle is that invoices must be issued at the time of transferring ownership or the right to use the goods to the partner, that is, at the time the business delivers the mooncakes, not at the time of purchasing the mooncakes from the supplier or at the time of making the decision to give internal gifts.
Incorrect invoicing timing is a common mistake during peak gift-giving seasons, as the volume of gifts from multiple sources and batches makes it easy for accountants to combine them or delay invoicing. Businesses can refer to the detailed regulations regarding this matter. Invoice issuance time according to Decree 254 This is to compare each specific case, avoiding mistakes in timing that could lead to penalties even if the transaction itself is not illegal.
How to properly invoice for gifting mooncakes to business partners according to regulations.
When determining whether issuing an invoice is mandatory for gifting mooncakes to business partners, businesses should note the following points when creating the invoice:
- Clearly state that the transaction is a gift, and no payment is required from the recipient. The invoice should fully detail the name and address of the recipient (if identifiable), the name of the goods, the quantity, the unit price, and the total amount, just like a regular sales transaction.
- The taxable value is the taxable value of similar or equivalent goods at the time of the gift. The price must not be left blank or set to zero, except in cases where there are specific regulations for promotional items under a registered program.
- Output value-added tax is still declared and paid as usual. on the taxable value of gifts, similar to a sales transaction.
- Revenue is recorded for corporate income tax purposes even though no payment is received from the partner. For the value of gifts and donations, the corresponding expenses must be accounted for in accordance with regulations.
- Keep all purchase invoices for mooncakes. To serve as a basis for comparing quantities and unit prices when preparing output invoices for gifting activities.
What are the penalties for not issuing invoices when giving mooncakes as gifts to business partners?
Even when businesses understand that giving mooncakes as gifts to partners requires issuing invoices, neglecting this step can lead to risks beyond simply lacking accounting documentation; they may also face administrative penalties for invoice-related violations.
Cases where a warning penalty is issued.
According to Clause 1, Article 24 of Decree 125/2020/ND-CP, some violations related to invoice issuance are only subject to a warning penalty if there are mitigating circumstances.
For example: Invoices were issued consecutively from smallest to largest number but in different invoice books, and the smaller invoice book was subsequently destroyed; or the wrong type of invoice was issued, but the seller and buyer discovered the error and corrected it before the tax authorities announced the inspection decision, thus not affecting the determination of tax obligations.
Specifically, the act of issuing invoices at the wrong time, but not resulting in a delay in fulfilling tax obligations and with mitigating circumstances, which was previously only punishable by a warning, has been abolished. Clause 2, Article 2 of Decree 310/2025/ND-CPBusinesses need to take note of this change to avoid mistakenly applying the old penalty rates.
Cases where a fine is imposed
The act of not issuing an invoice when giving or receiving goods as gifts—that is, completely disregarding the obligation to issue an invoice even when required—will result in a heavier penalty than a warning. This falls under the category of failing to issue invoices when selling goods or providing services, as stipulated in the regulations on administrative penalties for invoice violations.
The specific fine amount and any accompanying aggravating or mitigating circumstances must be compared with the penalty document in effect at the time the violation occurred, as regulations on invoice penalties have been and are being amended through numerous decrees.
In addition to fines, businesses may also be subject to retroactive collection of value-added tax and corporate income tax on the undeclared value of gifts and donations, along with accrued late payment penalties.
Common mistakes
In practice, during the final accounting process, several errors are repeated in most businesses every Mid-Autumn Festival season:
- Only keep the purchase invoice for the cakes; do not issue an output invoice for gifting activities. because they believe that if no payment is received, there's no need to issue an invoice.
- Combine multiple gift-giving events into a single invoice. Prepared at the end of the period, which is incorrect in terms of when the actual transactions occurred.
- Enter the taxable value as 0 or leave it blank. on gift invoices, instead of using the selling price of similar goods at the time of the gift.
- The name and information of the partner receiving the gift are not clearly identified.This results in invoices lacking required information or being issued internally in a way that is not true to their nature.
- Confusing gifts for business partners with entertainment expenses or employee gifts.This distorts the accounting methods and the way in which corresponding invoicing obligations are determined.
Each of these errors can become a point of interest for tax authorities during invoice audits, especially during peak audit periods after holidays and Tet (Lunar New Year).
What should businesses do to avoid risks when giving Mid-Autumn Festival gifts to partners?
To fully answer the question of whether businesses need to issue invoices and handle the matter correctly from the start when giving mooncakes as gifts to business partners, they should:
- Prepare a list of partners receiving gifts, including the quantity and unit price, before distributing mooncakes.
- Electronic invoices are issued at the time of cake delivery, not accumulated until the end of the billing period.
- Determine the correct tax base based on the selling price of similar goods, and declare output value-added tax in full.
- Store incoming invoices, gift lists, and outgoing invoices in a unified file for easy reference when needed.
For businesses without a dedicated accounting department to closely monitor seasonal transactions such as gifts, careful consideration is necessary. outsource accounting services This solution helps ensure that all transactions, including seemingly small expenses like Mid-Autumn Festival gifts, are handled correctly from the start, instead of discovering shortcomings only after an audit..
Conclude
The question of whether giving mooncakes as gifts to business partners requires issuing an invoice has been clearly answered. According to Clause 1, Article 4 of Decree 254/2026/ND-CP, the giving or gifting of goods is subject to the requirement of issuing electronic invoices, just like regular sales transactions, regardless of whether payment is received from the recipient.
Businesses need to issue invoices at the correct time of delivery, determine the correct taxable price, and fully declare all related tax obligations to avoid being warned or fined according to Decree 125/2020/ND-CP (amended by Decree 310/2025/ND-CP). A seemingly minor transaction during the Mid-Autumn Festival season, if overlooked, can become an unnecessary tax risk when the business is audited.
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Frequently Asked Questions about Giving Mooncakes as Gifts to Business Partners: Do I Need to Issue an Invoice?
If I give mooncakes as gifts to business partners, do I need to issue an invoice if the value is small?
Yes. Clause 1, Article 4 of Decree 254/2026/ND-CP does not set a minimum value threshold, so even if the value of mooncakes is small, businesses must still issue electronic invoices when giving them as gifts.
Do businesses that produce mooncakes themselves for gifting need to issue invoices?
Yes. The regulations apply to both purchased goods and self-produced goods intended as gifts, as long as there is a transfer of goods to the recipient.
Is there a penalty for not issuing an invoice when giving mooncakes as gifts?
Depending on the specific offense, penalties may include a warning or a fine, according to Decree 125/2020/ND-CP (amended by Decree 310/2025/ND-CP), along with the risk of tax arrears and late payment penalties if taxable revenue is omitted.
How is the taxable value determined when issuing invoices for gift mooncakes to business partners?
The taxable value is determined based on the selling price of similar or equivalent goods on the market at the time the gift or donation occurs; it cannot be left blank or recorded as zero.
When is the appropriate time to issue an invoice for mooncakes given as gifts?
This is the time when businesses deliver mooncakes to their partners, not the time to purchase them or approve internal gift-giving plans.
