Is the insurance on domestic animals subject to value-added tax in Vietnam? What are regulations on taxable price in Vietnam?

Is the insurance on domestic animals subject to value-added tax in Vietnam?

Pursuant to Clause 7, Article 5 of the Law on value-added tax 2008, supplemented by Clause 1, Article 3 of the Law Amending the Tax Laws 2014 and amended by Clause 1, Article 1 of the Law on Amendments to Law on value-added tax 2013, there are specific regulations regarding non-taxable objects as follows:

Non-taxable Objects

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3. Irrigation and drainage services; plowing and harrowing of land; dredging of internal field canals and ditches for agricultural production; agricultural product harvesting services.

3a. Fertilizers; specialized machinery and equipment used for agricultural production; offshore fishing vessels; livestock, poultry, and other animal feeds.

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5. State-owned housing sold by the State to current tenants.

6. Land use right transfer.

7. Life insurance, health insurance, student insurance, other human-related insurance services; livestock insurance, crop insurance, other agricultural insurance services; insurance of ships, boats, equipment, and other necessary tools directly serving the capture of aquatic products; reinsurance.

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Hence, according to the above regulation, livestock insurance is not subject to value-added tax (VAT).

Is the insurance on domestic animals subject to value-added tax in Vietnam? What are regulations on taxable price in Vietnam? (Image from Internet)

What entities are taxpayers in Vietnam?

According to Article 4 of the Law on value-added tax 2008, the specific regulations about VAT taxpayers are as follows:

VAT taxpayers are organizations and individuals producing and trading goods and services subject to VAT (hereinafter called business establishments) and organizations and individuals importing goods subject to VAT (hereinafter called importers).

What are regulations on taxable price in Vietnam?

According to Article 7 of the Law on value-added tax 2008, as amended by Clause 2, Article 1 of the Law on Amendments to Law on value-added tax 2013 and the regulation on exchange rates when determining the taxable price was abolished by Point c, Clause 2, Article 6 of the Law Amending the Tax Laws 2014, the specific regulations on the taxable price are as follows:

- For goods and services produced, traded, and sold by business establishments, it is the selling price not including VAT; for goods and services subject to special consumption tax, it is the selling price including special consumption tax but excluding VAT; for goods subject to environmental protection tax, it is the selling price including environmental protection tax but excluding VAT; for goods subject to both special consumption tax and environmental protection tax, it is the selling price including both special consumption tax and environmental protection tax but excluding VAT.

- For imported goods, it is the import price at the border gate plus import duty (if any), plus special consumption tax (if any), and plus environmental protection tax (if any). The import price at the border gate is determined according to regulations on the taxable price of imported goods.

- For goods and services used for exchange, internal consumption, and gifting, it is the VAT-taxable price of similar goods and services or equivalent at the time these activities occur.

- For leasing activities, it is the rental amount excluding VAT.

- In cases of periodic or pre-paid rental for a lease term, the taxable price is the rental amount paid periodically or pre-paid for the lease term excluding VAT.

In cases of leasing machinery, equipment, vehicles from abroad that are not produced domestically to lease them out, the taxable price is the rental fee minus the rental fee payable to the foreign party.

- For goods sold on installment payment, it is the taxable price calculated based on the one-time payment selling price excluding VAT, excluding installment interest, and delayed payment interest.

- For goods processing, it is the processing price excluding VAT.

- For construction and installation activities, it is the value of the work, construction item, or parts delivered excluding VAT. In cases of construction and installation without inclusive supply of raw materials, machinery, and equipment, the taxable price is the value of construction and installation excluding the value of raw materials and machinery and equipment.

- For real estate business activities, it is the selling price of real estate excluding VAT, except for the value of land use right transfer or land rent payments due to the State budget.

- For agency and brokerage activities for buying and selling goods and services earning commission, it is the commission earned from these activities excluding VAT.

- For goods and services using payment documents indicating the payment price including VAT, the taxable price is determined by the following formula:

Price excluding VAT = Payment price / (1 + VAT rate for goods, services (%))

- The taxable price for goods and services stipulated in Clause 1, Article 7 of the Law on value-added tax 2008 includes additional surcharges and fees that business establishments are entitled to.