Accordingly, when the company issues a shipping invoice to a customer, the amount will include the freight charge + tolls + fees for COVID-19 testing.

Transport items, road tickets are being applied the VAT rate of 8%.

Mr. Binh asked, when your company issues a joint invoice with the freight, will the COVID-19 test fee be subject to the same tax rate of 8%? Can customers deduct VAT on COVID-19 testing fees? If a separate invoice is issued, how much is the VAT issuer of the COVID-19 test fee?

The Tax Department of Binh Duong province responded to this problem as follows:

Pursuant to Clause 1, Article 1 of Decree No. 15/2022/ND-CP dated January 28, 2022 of the Government providing for VAT reduction as follows:

"1. Reduction of VAT for groups of goods and services currently applying the tax rate of 10%, except for the following groups of goods and services".

Pursuant to Article 2 of Decree No. 41/2022/ND-CP dated June 20, 2022 of the Government providing for amendments and supplements to Clause 4, Article 1 of Decree No. 15/2022/ND-CP dated January 28 the Government's 2022 stipulates tax exemption and reduction policies according to Resolution No. 43/2022/QH15 of the National Assembly on fiscal and monetary policies to support the Socio-economic recovery and development program as follows:

"4. In case a business establishment specified at Point a, Clause 2 of this Article, when selling goods or providing services, applies different tax rates, the VAT invoice must clearly state the tax rate of each good or service as prescribed in Clause 3 of this Article".

In case a business establishment specified at Point b, Clause 2 of this Article, when selling goods or providing services, the sales invoice must clearly state the amount of the reduction as prescribed in Clause 3 of this Article.

Pursuant to Point a, Clause 1, Article 1 of Circular No. 130/2016/TT-BTC dated August 12, 2016 of the Ministry of Finance providing for non-taxable goods and services as follows:

"9. Medical services, veterinary services, including medical examination and treatment services, disease prevention for humans and animals, planned childbirth services, health nursing services, and rehabilitation services for patients, care services for the elderly and disabled; transportation of patients, rental services of wards and beds of medical facilities; testing, screening, imaging, blood and blood products used for the sick…”.

Pursuant to Clause 9, Article 1 of Circular No. 26/2015/TT-BTC dated February 27, 2015 of the Ministry of Finance providing for VAT deduction rules as follows:

"2. Input VAT on goods and services (including fixed assets) used simultaneously for the production and trading of taxable and non-taxable goods and services, only the tax amount may be deducted. Input VAT of goods and services used for production and trading of goods and services subject to VAT, business establishments must separately account deductible and non-deductible input VAT. If the tax can be calculated separately, the deductible input tax shall be calculated according to the ratio (%) between the revenue subject to VAT, the revenue not required to declare and pay VAT compared to the total revenue of sold goods and services including: The whole revenue that is not required to be declared and paid for tax calculation cannot be accounted separately.

Pursuant to the above provisions, if your company, when selling goods or providing services, applies different tax rates, the VAT invoice must clearly state the tax rate of each item or services according to regulations prescribed in Article 2 of Decree No. 41/2022/ND-CP amending and supplementing Clause 4, Article 1 of Decree No. 15/2022/ND-CP.

In case the COVID-19 test fee is subject to preventive services as prescribed in Point a, Clause 1, Article 1 of Circular No. 130/2016/TT-BTC, it is not subject to VAT. When making VAT invoices, ask your company to clearly show the VAT rates according to the regulations of each type of goods and services.

In case of input VAT on goods and services (including fixed assets) used simultaneously for the production and trading of taxable and non-VATable goods and services, only the input VAT amount of goods and services used for the production and trading of goods and services subject to VAT might be deducted