One-Minute Tax Talk: Are Electronic Invoices Mandatory for Private Clinics with Annual Revenue of 950 Billion?

A private healthcare clinic, offering both medical services and pharmaceuticals, with an annual revenue of approximately 950 million VND, inquires about their tax obligations. Are they required to issue e-receipts, and if so, what is the tax amount due?

In response, the Tax Department clarifies that according to current regulations, such a clinic is not mandated to use e-receipts generated from a cash register machine. However, if desired, the tax authorities can provide support for implementation.

Regarding tax liabilities, Circular No. 40/2021/TT-BTC stipulates that taxes are calculated as a percentage of revenue, depending on the industry:

For medical services: These are exempt from value-added tax (VAT) and are subject only to personal income tax (PIT) at a rate of 2% of revenue.

For pharmaceutical and medical equipment sales: VAT is applicable at a rate of 1%, along with PIT at 0.5% of revenue.

Consequently, the precise tax liability will depend on the proportion of revenue generated from each activity conducted by the clinic during the year.

Another household business, involved in both manufacturing and trading activities, seeks clarification on how to declare and pay taxes.

The Tax Department responds by referring to Article 10 of Circular No. 40/2021/TT-BTC issued by the Ministry of Finance. In cases where a household business operates in multiple fields or industries, tax declarations and calculations should be made according to the tax rates applicable to each specific field or industry.

If the business is unable to determine the taxable revenue for each field or industry, or if the determination is inconsistent with the actual business situation, the tax authority will prescribe the taxable revenue for each field or industry in accordance with tax management laws.