From July 1, 2025, are medical examination and treatment services subject to VAT in Vietnam?

From July 1, 2025, are medical examination and treatment services subject to VAT in Vietnam?

Pursuant to Clause 10, Article 5 of the Law on Value-Added Tax 2024 (effective from July 1, 2025), it is stipulated as follows:

Objects not subject to tax

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10. The following medical services and veterinary services:

a) Medical services include: medical examination, treatment, and preventive services for people; family planning services; health nursing services; rehabilitation for patients; care services for the elderly and disabled; patient transportation; rental services of hospital rooms and beds at medical facilities; tests, scans, X-rays; blood and blood products used for patients.

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

In cases where a treatment service package prescribed by the Ministry of Health includes medication, the revenue from medication within the treatment service package is also not subject to value-added tax;

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

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Thus, from July 1, 2025, medical examination and treatment services are not subject to value-added tax.

Note: In cases where a treatment service package prescribed by the Ministry of Health includes medication, the revenue from medication within the treatment service package is also not subject to value-added tax.

From July 1, 2025, are medical examination and treatment services subject to VAT in Vietnam? (Image from the Internet)

When is the time for determination of VAT for services in Vietnam?

Pursuant to Article 8 of the Law on Value-Added Tax 2024, the time for determination of VAT is stipulated as follows:

Time for determination of VAT

1. The time for determination of VAT is stipulated as follows:

a) For goods: the point of transfer of ownership or right to use goods to the buyer or the point of issuing the invoice, irrespective of whether money has been collected;

b) For services: the point of completing the provision of services or the point of issuing the service provision invoice, irrespective of whether money has been collected.

2. The time for determination of VAT for the following goods and services is prescribed by the Government of Vietnam:

a) Exported goods, imported goods;

b) Telecommunication services;

c) Insurance business services;

d) Electricity supply activities, electricity production activities, clean water;

đ) Real estate business activities;

e) Construction, installation, and oil and gas activities.

Thus, the time for determination of VAT for services is the point of completing the provision of services or the point of issuing the service provision invoice, irrespective of whether money has been collected.

From July 1, 2025, who are the value-added taxpayers in Vietnam?

Pursuant to Article 4 of the Law on Value-Added Tax 2024, specific provisions on VAT taxpayers are as follows:

- Organizations, households, individuals producing, and trading goods and services subject to value-added tax (hereinafter referred to as business establishments).

- Organizations, individuals importing goods subject to value-added tax (hereinafter referred to as importers).

- Organizations, individuals producing, and doing business in Vietnam, purchasing services (including purchasing services attached to goods) from foreign organizations without a permanent establishment in Vietnam; individuals abroad who are non-residents in Vietnam, except for the cases prescribed in Clauses 4 and 5, Article 4 of the Law on Value-Added Tax 2024; organizations operating businesses in Vietnam purchasing goods and services to conduct exploration and development of oil and gas fields and exploitation activities with foreign organizations without a permanent establishment in Vietnam; individuals abroad who are non-residents in Vietnam.

- Foreign suppliers without a permanent establishment in Vietnam conducting e-commerce activities, business on digital platforms with organizations and individuals in Vietnam (hereinafter referred to as foreign suppliers); organizations as foreign digital platform managers carrying out deduction and tax payment on behalf of foreign suppliers; business organizations in Vietnam applying the method of value-added tax calculation by deduction, purchasing services from foreign suppliers without permanent establishment in Vietnam through e-commerce channels or digital platforms, carrying out deduction and tax payment on behalf of foreign suppliers.

- Organizations as e-commerce platform managers, digital platform managers with payment functions conducting deduction, tax payment, and declaration of withheld tax amounts for business households, individuals doing business on e-commerce platforms, digital platforms.