Which healthcare services are not subject to VAT in Vietnam from July 1, 2025?

Which healthcare services are not subject to Value Added Tax (VAT) in Vietnam from July 1, 2025?

Pursuant to Article 18 of the Law on Value Added Tax 2024 (effective from July 1, 2025), the implementation effectiveness is specifically stipulated as follows:

Effectiveness of Implementation

1. This Law takes effect from July 1, 2025, except as stipulated in Clause 2 of this Article.

2. Regulations on the revenue thresholds for households and individual businesses that are exempt from tax under Clause 25 Article 5 of this Law and Article 17 of this Law take effect from January 1, 2026.

3. The Law on Value Added Tax No. 13/2008/QH12, amended by Law No. 31/2013/QH13, Law No. 71/2014/QH13, and Law No. 106/2016/QH13, ceases to be effective from the day this Law takes effect.

According to Clause 10 of Article 5 of the Law on Value Added Tax 2024, the specific exemptions from VAT include:

The following healthcare and veterinary services are not subject to VAT from July 1, 2025:

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

- Elderly and disabled care services, including health care, nutrition, and organization of cultural, sports, entertainment activities, physiotherapy, rehabilitation for the elderly and disabled.

- Veterinary services, including examination, treatment, and disease prevention services for animals.

Note:

In cases where a medical treatment service package as defined by the Ministry of Health includes the use of medication, the revenue from the medication in the service package is also exempt from VAT.

Which healthcare services are not subject to VAT in Vietnam from July 1, 2025? (Image from the Internet)

Which entities are VAT taxpayers in Vietnam from July 1, 2025?

Pursuant to Article 4 of the Law on Value Added Tax 2024, the specifics of who is subject to VAT are as follows:

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

- Organizations and individuals importing goods subject to VAT (hereinafter referred to as importers).

- Organizations and individuals conducting business in Vietnam purchasing services (including services associated with goods) from foreign organizations without a permanent establishment in Vietnam, individuals abroad who are non-residents in Vietnam, except as stipulated in Clauses 4 and 5 Article 4 of the Law on Value Added Tax 2024; organizations involved in oil and gas exploration, development, and exploitation activities in Vietnam purchasing goods and services from 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 business, digital platform-based business with organizations and individuals in Vietnam (hereinafter referred to as foreign suppliers); organizations managing foreign digital platforms performing deduction and substitute tax payment obligations for foreign suppliers; businesses in Vietnam applying the VAT deduction method purchasing services from foreign suppliers without a permanent establishment in Vietnam via e-commerce or digital platforms performing deduction and substitute tax payment obligations for foreign suppliers.

- Organizations managing electronic trading platforms, digital platforms with payment functions performing tax deduction, substitute payment, and declaring the deducted tax for household businesses, individual businesses on said trading or digital platforms.

When is the time for determining VAT in Vietnam according to the Law on Value Added Tax 2025?

Pursuant to Article 8 of the Law on Value Added Tax 2024, the point of determining VAT is specifically stipulated as follows:

[1] The determination point for VAT is stipulated as follows:

- For goods, it is the point of transfer of ownership or right to use the goods to the buyer or the point of issuing the invoice, regardless of whether payment has been received.

- For services, it is the completion point of providing the service or the issuance point of the service invoice, regardless of whether payment has been received.

[2] The determination point for VAT on the following goods and services is regulated by the Government of Vietnam:

- Export and import goods;

- Telecommunication services;

- Insurance business services;

- Supply of electricity, water production activities;

- Real estate business activities;

- Construction, installation, and oil and gas activities.