Hanoi Truck Rental: A Comprehensive Guide to Accounting

“A fair deal benefits both buyer and seller” – a familiar Vietnamese proverb that holds true, especially in the transportation industry. Renting trucks is increasingly common, providing businesses with operational flexibility without significant capital investment. However, not all businesses understand how to accurately account for truck rentals in compliance with tax regulations.

This article provides a detailed overview of truck rental accounting, helping businesses optimize costs and ensure legal compliance.

What is Truck Rental Accounting?

Truck rental accounting involves systematically recording and reflecting all economic transactions related to truck rentals in a company’s accounting books. This process enables businesses to track and control rental expenses while serving as a basis for determining tax liabilities.

Truck Rental Accounting Scenarios

The accounting method varies depending on the vehicle’s purpose, the rental agreement, and specific contractual terms. Here are some common scenarios:

1. Accounting for Truck Rentals for Goods Transportation

Scenario 1: Your company rents a truck from Dai Phat Transport Co., Ltd. (located in Long Bien District, Hanoi) to transport goods from the warehouse to a retail store.

Accounting Entry:

• Debit: Account 154 – Work in Progress or Account 641 – Cost of Goods Sold (depending on the nature of the business).
• Credit: Account 111 – Cash or 112 – Bank Deposits (depending on the payment method).

Supporting Documents: Rental agreement, VAT invoice, goods delivery receipt, etc.

Scenario 2: Your company rents a truck from Gia Bao Transport JSC (located in Hoang Mai District, Hanoi) to transport raw materials from a supplier to the warehouse.

Accounting Entry:

• Debit: Account 152 – Cost of Raw Materials.
• Credit: Account 111 – Cash or 112 – Bank Deposits (depending on the payment method).

Supporting Documents: Similar to Scenario 1.

2. Accounting for Truck Rentals for Business Trips

Scenario: Your company rents a 7-seater vehicle from ABC Tourism and Transportation Co., Ltd. (located in Ba Dinh District, Hanoi) to transport employees on a business trip to Hai Phong.

Accounting Entry:

• Debit: Account 142 – Prepaid Expenses (if paid in advance) or 331 – Accounts Payable (if paid later).
• Credit: Account 111 – Cash or 112 – Bank Deposits.

After the business trip:

• Debit: Account 642 – Selling Expenses or 641 – General and Administrative Expenses (depending on the trip’s purpose).
• Credit: Account 142 – Prepaid Expenses or 331 – Accounts Payable.

Supporting Documents: Rental agreement, VAT invoice, payment request form, business trip authorization,…

A truck transporting goods.

3. Accounting for Truck Rentals for Subleasing

Scenario: Your company, operating a car rental business, rents a vehicle from an individual or another organization for subleasing.

Accounting Entry:

• Debit: Account 154 – Work in Progress.
• Credit: Account 111 – Cash or 112 – Bank Deposits.

Supporting Documents: Rental agreement, VAT invoice, etc.

Truck Rental Price List (Reference)

Note: This price list is for reference only. Actual prices may vary depending on the rental period, vehicle type, rental duration, distance traveled, etc.

Truck rental price list.

Important Notes on Truck Rental Accounting

• Businesses must retain all legal documents as supporting evidence for accounting and tax settlement.
• Clearly distinguish the purpose of the vehicle rental to ensure accurate account allocation.
• Regularly monitor, check, and reconcile data to ensure accuracy and transparency.

Frequently Asked Questions about Truck Rental Accounting

1. Can businesses deduct input VAT when renting a truck?

Answer: Yes. Businesses can deduct input VAT on truck rentals if they meet the conditions stipulated in the Value Added Tax Law.

2. How is Corporate Income Tax calculated when renting a truck?

Answer: Truck rental expenses are considered reasonable costs when determining Corporate Income Tax if they meet the specified conditions.

Choosing a Reputable Truck Rental Company

To protect their interests, businesses should choose reputable truck rental companies with complete legal documentation. Consider these factors:

• Reasonable Pricing: Compare prices from different rental companies before making a decision.
• Vehicle Quality: Choose companies with new, modern vehicles that undergo regular maintenance.
• Customer Service: Opt for companies with professional, dedicated, and attentive customer service.

About XE TẢI HÀ NỘI

HANOI TRUCKS is a proud provider of reputable and high-quality truck rental services in Hanoi. With our experienced team, we are committed to delivering complete customer satisfaction.

Contact Information:

• Showroom 1: No. 1, X Street, Hoan Kiem District, Hanoi.
• Showroom 2: No. 2, Y Street, Cau Giay District, Hanoi.
• Showroom 3: No. 3, Z Street, Thanh Xuan District, Hanoi.

Related Services

In addition to truck rentals, HANOI TRUCKS also offers:

• Luxury Car Rental Services
• Contract Car Services
• Freight Transportation Services

Conclusion

Truck rental accounting is essential for all businesses. This article hopefully provided valuable insights into this topic.

To learn more about HANOI TRUCKS’ services, please visit our website xetaihanoi.edu.vn or contact our hotline at 0987.654.321 for detailed consultation.