Is the veterinary service subject to value-added tax in Vietnam?

Is the veterinary service subject to value-added tax in Vietnam?

Pursuant to Clause 9 Article 4 of Circular 219/2013/TT-BTC amended by Clause 1 Article 1 of Circular 130/2016/TT-BTC, defining the subjects not liable to value-added tax (VAT) as follows:

Subjects not liable to VAT

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9. Medical services, veterinary services, including medical examination, treatment, prevention for humans and animals, family planning services, health nursing services, rehabilitation for patients, care services for the elderly, the disabled; patient transportation, room and bed rental services of medical facilities; testing, imaging, blood and blood products for patients.

Care services for the elderly and the disabled include medical care, nutrition, and organization of cultural, sports, entertainment activities, physical therapy, rehabilitation for the elderly and the disabled.

In the case where a treatment service package (as specified by the Ministry of Health) includes the use of medicine for treatment, the revenue from the medicine included in the treatment service package is also not subject to VAT.

According to the above regulations, the veterinary service, including disease examination, treatment, and prevention for animals, is not subject to value-added tax.

 Is the veterinary service subject to value-added tax in Vietnam? (Internet)

When is the time for calculating value-added tax in Vietnam?

According to Article 8 of Circular 219/2013/TT-BTC, the time for calculating value-added tax is stipulated as follows:

- For goods sales, it is the time of transferring ownership or usage rights of goods to the buyer, regardless of whether payment has been collected or not.

- For service provision, it is the time of completion of service provision or the time of issuing the service provision invoice, regardless of whether payment has been collected or not.

For telecommunications services, it is the time of reconciling data on telecommunication service connection charges as per the economic contract between telecommunications service businesses, but no more than 2 months from the month in which the telecommunication service connection charges arise.

- For electricity and water supply activities, it is the date of recording the electricity, water consumption index on the meters to issue the bill.

- For real estate business activities, infrastructure construction, house building for sale, transfer or lease, it is the time of collecting money following the project execution schedule or collection schedule stated in the contract. Based on the collected amount, the business entity declares the output VAT incurred in the period.

- For construction and installation activities, including shipbuilding, it is the time of acceptance and handover of the project, project category, completed construction volume, regardless of whether payment has been collected or not.

- For imported goods, it is the time of registering the customs declaration form.

Where is the place to pay value-added tax in Vietnam?

According to Article 20 of Circular 219/2013/TT-BTC, the place to pay value-added tax is stipulated as follows:

- Taxpayers declare and pay VAT at the locality where they produce or do business.

- Taxpayers declaring and paying VAT by the deduction method who have dependent accounting production entities located in provinces, centrally-run cities different from the province, city where the head office is located must pay VAT at the locality where the production entity and the head office are located.

- In the case of enterprises, cooperatives applying the direct method having production facilities in provinces, cities different from where the head office is located or having itinerant sale activities outside the province, the enterprise, cooperative declares and pays VAT based on a percentage on the revenue for the revenue generated outside the province at the locality where the production facility is located, where the itinerant sale takes place.

Enterprises and cooperatives do not have to pay VAT based on a percentage on the revenue at the head office for the revenue generated out-of-province that has been declared and paid.

- In case telecommunication service business entities have postpaid telecommunication services in provinces, centrally-run cities different from where the head office is located and establish dependent accounting branches paying VAT by the deduction method also participating in the postpaid telecommunication service business at that locality, the telecommunication service business entity declares and pays VAT for postpaid telecommunication services as follows:

+ Declare VAT for the revenue of postpaid telecommunication services of the entire business entity with the tax authority directly managing the head office.

+ Pay VAT at the locality of the head office and the locality where the dependent accounting branch is located.

- The VAT payable at the locality where the dependent accounting branch is located is determined by a 2% rate (for postpaid telecommunication services subject to VAT at a 10% tax rate) on the revenue (excluding VAT) of postpaid telecommunication services at the locality where the dependent accounting branch is located.

- The declaration and payment of VAT is implemented according to the regulations of the Law on Tax Administration and guiding legal documents.