Insurance is an activity through which an individual is entitled to an insurance benefit by means of a contribution to himself or to a third person in the event of an accident. However, many people worry that buying insurance, especially health insurance will be subject to VAT. Is health insurance subject to VAT? Please follow the following article of Lawyer X for more information!
What is health insurance?
Health insurance is a type of voluntary insurance, which helps to pay part or all of the cost of treatment of medical facilities (in the list of hospitals and clinics in the contract) when the insured is injured. illness, injury, accident, care and rehabilitation.
The contract term of health insurance is quite short, usually about 1 year. When the insurance contract expires, the insurance benefits also end. Participants need to continue to pay premiums to renew and maintain insurance benefits.
Compare types of health insurance in Vietnam
Today, when the need for health protection is increasingly concerned, the health insurance products are also more diverse. In general, health insurance includes 3 main types as follows:
Human accident insurance
When participating in human accident insurance, participants will be protected against the risk of accidents leading to injury and death.
Occupational accident insurance related to Social Insurance is a type of compulsory accident insurance.
Accident insurance provided by non-life insurance companies is voluntary accident insurance.
Accident insurance benefits will be paid as a percentage of the insured amount (in case of death, the entire insured amount will be received). In addition, the costs of treatment and incurred due to accidents will be compensated by the insurance company according to the actual costs or according to the provisions of each insurance product.
Commercial health insurance
Commercial health insurance is a product of non-life insurance companies, designed with the benefit of supporting medical expenses in case of illness, disease, accident…
Commercial health insurance is based on the principle of voluntary participation.
Benefits go hand in hand with the premium amount. This means, the higher the premium, the higher the benefits, and the lower the benefit.
Life insurance company health care insurance
Usually a type of supplementary insurance, attached to a main life insurance product with accumulated or investment value. This insurance product duo will be the optimal financial support solution; both help protect and support costs (inpatient treatment, hospital stay, surgery, accident…), and accumulate or invest profitably.
Participation in life health insurance is voluntary, depending on need
Insurance benefits are much higher with the limit specified in the insurance policy.
Thus, it can be seen that not all types of health insurance are the same. To ensure the best benefits for yourself, you should learn and compare the types of health insurance, then based on the needs and finances of the individual and family to choose the right one.
Benefits of health insurance
If you are wondering whether to buy health insurance or not, let’s take a look at the benefits of health insurance to find an exact answer for yourself.
Financial security against risks and accidents
The core benefit that health insurance products bring is timely financial support. Thereby, sharing the burden of hospital fees and financial difficulties so that the insured can safely receive treatment and quickly recover their health.
Save transit time
Struggling with hospital admission and transfer procedures makes many people tired because it takes a lot of time. But when participating in health insurance, this waiting period will be shortened. Just show the personal health insurance card, the medical examination and treatment will be supported by hospitals that accept insurance quickly.
Have the flexibility to choose a medical facility in the contract list
Participating in health insurance – You can flexibly choose the hospital you trust, no need to go to the right route. Currently, when participating in various types of health insurance, customers are provided with a list of many hospitals that accept insurance. Participants who receive medical treatment at the hospitals on this list will be guaranteed hospital fees as well as other related treatment costs.
In particular, some high-end health insurance products also cover the cost of medical treatment at foreign hospitals. This is also a benefit of health insurance that you cannot ignore.
Who should join health insurance right away?
Health is the most valuable asset and everyone wants to have good health to work and live happily. However, accidents or illness are risks that no one can avoid. Therefore, having a financial plan for yourself against these risks is essential to be able to receive treatment, access medical services in time and especially will not become a burden for the family.
Everyone should join health insurance to protect their health against many risks in life.
Is health insurance subject to VAT?
According to Clause 7, Article 4 of Circular 219/2013/TT-BTC stipulating “Life insurance, health insurance, insurance for learners, other insurance services related to people; livestock insurance, crop insurance, other agricultural insurance services; insurance for ships, boats, equipment and other necessary tools in direct service of fishing; reinsurance”.
Thus, health insurance is not subject to VAT. Therefore, health insurance participants will not have to pay VAT.
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Frequently asked questions
Value added tax is an indirect tax levied on the added value of goods and services arising in the process from production, circulation to consumption. And be paid into the State budget according to the level of consumption of goods and services.
The contract term of health insurance is quite short, usually about 1 year. When the insurance contract expires, the insurance benefits also end. Participants need to continue to pay premiums to renew and maintain insurance benefits
Participation in life insurance is voluntary, depending on the needs of each person.
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