How are Tax Invoice Declarations for Electrostimulation Device Manufacturing Activities at the Central Acupuncture Hospital Guided?
What are the principles for creating, managing, and using invoices and documents?
According to Clause 1, Article 4 of Decree 123/2020/ND-CP on the principles for creating, managing, and using invoices and documents as follows:
Principles for creating, managing, and using invoices and documents
1. When selling goods or providing services, the seller must issue an invoice to deliver to the buyer (including cases where goods and services are used for promotion, advertising, samples; goods and services are given, donated, exchanged, compensated for employees, and for internal consumption (except for internally circulated goods for continued production); export of goods in forms of loans, borrowings, or return of goods) and must fully record the contents as prescribed in Article 10 of this Decree; in case of using electronic invoices, it must follow the standard data format of the tax authority as prescribed in Article 12 of this Decree.
Thus, according to the regulations, when selling goods or providing services, the seller must issue an invoice to deliver to the buyer and must fully record the contents as prescribed in Article 10 of this Decree; in case of using electronic invoices, it must follow the standard data format of the tax authority as prescribed in Article 12 of this Decree.
Guidance from the Hanoi Tax Department on the declaration of tax invoices for the production of electric acupuncture machines at the Central Acupuncture Hospital (Image from the Internet)
Which goods and services are subject to a 10% tax rate?
According to Article 11 of Circular 219/2013/TT-BTC on goods and services subject to a 10% tax rate as follows:
Tax rate 10%
The tax rate of 10% applies to goods and services not regulated in Articles 4, 9, and 10 of this Circular.
The VAT rates stated in Articles 10 and 11 are consistently applied for each type of goods and services in import, production, processing, or commercial business stages.
Thus, according to the regulations, the 10% tax rate applies to goods and services not regulated in Articles 4, 9, and Article 10 of Circular 219/2013/TT-BTC.
Which medical equipment and tools are subject to a 5% VAT rate?
Based on Article 1 of Circular 43/2021/TT-BTC, amending and supplementing Clause 11, Article 10 of Circular 219/2013/TT-BTC on applying the 5% VAT rate as follows:
Tax rate 5%
...
11. Medical equipment and tools including medical machines and tools: scanners, lighting, imaging machines used for examination and treatment of diseases; specialized tools used for surgery, wound treatment, ambulance cars; blood pressure measuring tools, heart, and blood measurement tools, blood transfusion tools; syringes; contraceptive tools; medical equipment and tools with import permits or circulation registration certificates or receiving certificates standard publication dossier according to medical law or according to the list of medical equipment subject to specialized management of the Ministry of Health identified by commodity codes according to the list of exported and imported goods of Vietnam issued together with Circular No. 14/2018/TT-BYT dated May 15, 2018, of the Minister of Health and amended, supplemented documents (if any).
Cotton, bandages, medical gauze, and medical sanitary towels; preventive and curative drugs including finished drugs, raw materials for making drugs, except functional foods; vaccines; medical biological products, distilled water for mixing injectable drugs, intravenous fluids; hats, clothes, masks, surgical drapes, gloves, specialty shoes, and bags, medical-specific containers, breast implants, and dermal fillers (excluding cosmetics); materials for testing, disinfecting chemicals used in medical.
Thus, the medical equipment and tools specified above are subject to a 5% VAT rate.
What are the regulations on tax declaration, calculation, allocation, and payment of value-added tax?
According to Clause 8, Article 3 of Circular 80/2021/TT-BTC on the definitions of terms:
Definitions of terms
Besides the terms defined in the Law on Tax Administration and Decree No. 126/2020/ND-CP, some terms in this Circular are understood as follows:
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8. "Dependent unit" includes branches and representative offices.
Based on Clause 4, Article 13 of Circular 80/2021/TT-BTC on tax declaration, calculation, allocation, and payment of value-added tax as follows:
Tax declaration, calculation, allocation, and payment of VAT
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4. For dependent units directly selling goods, using invoices registered by the dependent unit or registered by the taxpayer with the tax authority managing the dependent unit, accounting fully for output and input VAT, the dependent unit declares and pays VAT to the tax authority directly managing the dependent unit.
Thus, the tax declaration, calculation, allocation, and payment of VAT are regulated as above.
Based on the above regulations, Official Dispatch 46349/CTHN-TTHT in 2022 from the Hanoi Tax Department issued guidelines on the declaration of tax invoices for the production of electric acupuncture machines at the Central Acupuncture Hospital.
- In principle, medical equipment and tools regulated in Article 1 of Circular 43/2021/TT-BTC are subject to a 5% VAT rate.
+ In cases of goods and equipment not listed as medical tools in Article 1 of Circular 43/2021/TT-BTC, the VAT rate of 10% as prescribed in Article 11 of Circular 219/2013/TT-BTC applies.
+ In cases where the Hospital establishes a Center for the production of electric acupuncture machines as a dependent unit directly selling goods, using invoices registered by the Center or by the Hospital with the tax authority managing the Center, fully accounting for output and input VAT, the Center declares and pays VAT to the tax authority directly managing the Center.
Above is Official Dispatch 46349/CTHN-TTHT in 2022 from the Hanoi Tax Department issued guidelines on the declaration of tax invoices for the production of electric acupuncture machines at the Central Acupuncture Hospital.
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