Since 12/9/2011, Ministry of Finance issued Circular 128/2011/TT-BTC guiding VAT tax and enterprise income tax EIT to public health establishments.
Accordingly, as for medicines regulated at point 2.11, head II, part B of Circular 129/2008/TT-BTC, VAT tax 5% will be applied. In case, if medicines are a part of treatment service package, all revenue from that treatment activity is not subject to VAT tax.
VAT tax is also exempted to services in fields of preventive health, test which are charged fee, income from medical treatment within the service price frame,…
In case public health establishments can enter in the accounts revenue but not costs, they enumerate EIT payment according to percent (%) rate basing on revenue. Specially, as for service: 5%, good business: 1%, other activities: 2%
This Circular takes effect since 01/01/2012.