Are healthcare services and veterinary services exempt from VAT in Vietnam from July 1, 2025?

Are healthcare services and veterinary services exempt from VAT in Vietnam from July 1, 2025? 

Based on Clause 10, Article 5 of the Law on Value-Added Tax 2024 which stipulates the subjects not subject to tax as follows:

Non-taxable subjects

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10. The following healthcare services and veterinary services:

a) Healthcare services include: medical examination, treatment, and disease prevention services for people, family planning services, health care services, rehabilitation services for patients; elderly care services, services for disabled individuals; patient transportation, room and bed rental services in healthcare facilities; laboratory tests, examination, imaging; blood and blood products for patients.

Elderly care services, services for disabled individuals include healthcare, nutrition care, and organizing cultural, sports, entertainment activities, physiotherapy, and rehabilitation for the elderly and disabled individuals.

In cases where the medical treatment service package as regulated by the Ministry of Health includes the use of medications, the charges from medications included in the medical treatment package are also not subject to value-added tax;

b) Veterinary services include: medical examination, treatment, and disease prevention services for animals.

11. Funeral services.

12. Activities of maintenance, repair, and construction using funds contributed by the people, humanitarian aid funds (accounting for at least 50% of the total capital used for the construction) for cultural-historical relics, scenic spots, cultural works, art works, public service works, infrastructure, and housing for social policy beneficiaries.

...

Thus, from July 1, 2025, healthcare services and veterinary services exempt from VAT are:

- Healthcare services include: medical examination, treatment, and disease prevention services for people, family planning services, health care services, rehabilitation services for patients; elderly care services, services for disabled individuals; patient transportation, room and bed rental services in healthcare facilities; laboratory tests, examination, imaging; blood and blood products for patients.

+ Elderly care services, services for disabled individuals include healthcare, nutrition care, and organizing cultural, sports, entertainment activities, physiotherapy, and rehabilitation for the elderly and disabled individuals.

+ In cases where the medical treatment service package as regulated by the Ministry of Health includes the use of medications, the charges from medications included in the medical treatment package are also not subject to value-added tax;

- Veterinary services include: medical examination, treatment, and disease prevention services for animals.

Are healthcare services and veterinary services exempt from VAT in Vietnam from July 1, 2025? (Image from the Internet)

When is the VAT determined in Vietnam according to the Law on Value-Added Tax 2024?

Based on Article 8 of the Law on Value-Added Tax 2024 which stipulates the time for determining VAT as follows:

- The time of determining the value-added tax is regulated as follows:

+ For goods, it is the time of transfer of ownership rights or rights to use the goods to the buyer, or the time of issuing the invoice, regardless of whether the money has been collected;

+ For services, it is the time of completion of service provision or the time of issuing the invoice for service provision, regardless of whether the money has been collected.

- The time for determining the value-added tax for the following goods and services is regulated by the Government of Vietnam:

+ Exported goods, imported goods;

+ Telecommunications services;

+ Insurance business services;

+ Electricity supply operations, electricity production operations, clean water;

+ Real estate business operations;

+ Construction, installation activities and oil and gas operations.

Which goods and services are subject to a 0% VAT rate in Vietnam from July 1, 2025?

Based on Clause 1, Article 9 of the Law on Value-Added Tax 2024 which stipulates the 0% VAT rate applicable to goods and services as follows:

- Exported goods include: goods from Vietnam sold to organizations, individuals abroad and consumed outside of Vietnam; goods from domestic Vietnam sold to organizations in non-tariff zones and consumed in the non-tariff zone serving direct export production activities; goods already sold in the isolated area to individuals (foreigners or Vietnamese) who have completed exit procedures; goods sold at duty-free shops;

- Exported services include: services provided directly to organizations, individuals abroad and consumed outside of Vietnam; services provided directly to organizations in the non-tariff zones and consumed in the non-tariff zone serving direct export production activities;

- Other export goods and services include: international transportation; rental services for transport vehicles used outside the territory of Vietnam; aviation and maritime services provided directly or through agents for international transportation; construction, installation of works abroad or in the non-tariff zone; digital content products provided to abroad and accompanied by documentation proving consumption outside of Vietnam as prescribed by the Government of Vietnam; replacement parts, materials to repair, maintain machinery, equipment for overseas parties and consumed outside of Vietnam; processed goods transitioning for export as prescribed by law; goods and services not subject to value-added tax when exported, except for instances not applying the 0% tax rate as specified in Point d, Clause 4 of this Article;

- Instances not subject to the 0% tax rate include: transfer of technology, intellectual property rights transfer abroad; reinsurance services abroad; credit granting services; capital transfer; derivative products; postal and telecommunications services; exported products specified in Clause 23, Article 5 of the Law on Value-Added Tax 2024; cigarettes, alcohol, beer imported and then exported; gasoline, oil purchased domestically to sell to businesses in non-tariff zones; automobiles sold to organizations, individuals in non-tariff zones.

Note: Law on Value-Added Tax 2024 takes effect from July 1, 2025, except as stipulated in Clause 2, Article 18 of the Law on Value-Added Tax 2024.