Which medical services and veterinary services in Vietnam are exempt from value-added tax?
Which medical services and veterinary services in Vietnam are exempt from value-added tax?
Pursuant to Clause 10, Article 5 of the Law on Value-Added Tax 2024, the medical services and veterinary services subject to value-added tax include:
- Medical services including medical examination, treatment, and prevention for humans; family planning services; health nursing services, rehabilitation for patients; care services for the elderly, disabled; transport for patients, hospital room rental, bed rental services of medical facilities; testing, scanning, and imaging; blood and blood products used for patients.
- Care services for the elderly and disabled, including medical care, nutrition, and organization of cultural, sports, recreational activities, physical therapy, and rehabilitation for the elderly and disabled.
In the case where the medical treatment package includes the use of medication as prescribed by the Ministry of Health, the revenue from the medication included in the treatment package is also not subject to value-added tax.
- Veterinary services including medical examination, treatment, and prevention for animals.
Which medical services and veterinary services in Vietnam are exempt from value-added tax? (Image from the Internet)
Which goods and services in Vietnam are subject to 0% value-added tax rate?
Pursuant to Article 9 of the Law on Value-Added Tax 2024, the tax rates are prescribed as follows:
Article 9. Tax Rates
- The 0% tax rate applies to the following goods and services:
a) Export goods include goods from Vietnam sold to organizations or individuals abroad and consumed outside Vietnam; goods from domestic Vietnam sold to organizations in non-tariff zones and consumed in the non-tariff zones directly serving export production; goods sold in isolated areas to individuals (foreigners or Vietnamese) who have completed exit procedures; goods sold in duty-free shops;
b) Export services include services provided directly to organizations or individuals abroad and consumed outside Vietnam; services provided directly to organizations in non-tariff zones and consumed in non-tariff zones directly serving export production;
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The 0% value-added tax rate applies to goods and services as follows:
- Export goods including:
+ Goods from Vietnam sold to organizations or individuals abroad and consumed outside Vietnam
+ Goods from domestic Vietnam sold to organizations in non-tariff zones and consumed in non-tariff zones directly serving export production
+ Goods sold in isolated areas to individuals (foreigners or Vietnamese) who have completed exit procedures
+ Goods sold in duty-free shops
- Export services including:
+ Services provided directly to organizations or individuals abroad and consumed outside Vietnam
+ Services provided directly to organizations in non-tariff zones and consumed in non-tariff zones directly serving export production
- Other exported goods and services include:
+ International transportation; rental services for means of transport used outside the territory of Vietnam
+ Services of the aviation and maritime sectors provided directly or through agents for international transport
+ Construction and installation activities abroad or in non-tariff zones
+ Digital content products provided to foreign parties with dossiers and documents proving consumption outside Vietnam as prescribed by the Government of Vietnam
+ Spare parts, materials for repairing and maintaining means of transport, machinery, equipment for foreign parties and consumed outside Vietnam
+ Forwarding processed goods for export as prescribed by law
+ Goods and services subject to non-taxation when exported.
Note: Cases not applicable to the 0% tax rate include:
- Transfer of technology, transfer of intellectual property rights abroad
- Reinsurance services abroad
- Credit granting services
- Capital transfer
- Derivative products
- Postal and telecommunications services
- Export products prescribed in Clause 23, Article 5 of the Law on Value-Added Tax 2024
- Import then export of tobacco, wine, beer
- Petrol and oil purchased domestically and sold to businesses in non-tariff zones
- Automobiles sold to organizations or individuals in non-tariff zones.
What is the time for determining value-added tax on services in Vietnam?
Pursuant to Article 8 of the Law on Value-Added Tax 2024, the time for determining value-added tax is prescribed as follows:
Article 8. Time for Determining Value-Added Tax
- The time for determining value-added tax is regulated as follows:
a) For goods, it is the time of transfer of ownership or right to use the goods to the buyer or the time of issuing invoices, regardless of whether money has been collected;
b) For services, it is the time of completion of the provision of services or the time of issuing invoices for services, regardless of whether money has been collected.
- The time for determining value-added tax for the following goods and services is regulated by the Government of Vietnam:
a) Exported goods and imported goods;
b) Telecommunication services;
c) Insurance business services;
d) Power supply, electricity production, clean water activities;
dd) Real estate business activities;
e) Construction, installation, and petroleum activities.
According to the above regulations, the time for determining value-added tax on services is the time of completion of the provision of services or the time of issuing invoices for services, regardless of whether money has been collected.
Additionally, the time for determining value-added tax for certain services is regulated by the Government of Vietnam:
- Telecommunication services
- Insurance business services
