LIFE INSURANCE WITHOUT VALUE-ADDED TAX

Article 14 of the Law on Insurance Business No. 24/2000/QH10 dated December 9, 2000 stipulates: “Insurance contracts must be made in writing. Proof of entering into an insurance contract is an insurance certificate, insurance policy, telegram, telex, fax and other forms prescribed by law.

Article 15 of the Law on Insurance Business No. 24/2000/QH10 stipulates that for time of arising insurance liability, Insurance liability arises when an insurance contract has been concluded or when there is evidence that the insurance enterprise has accepted insurance and the insurance buyer has paid the insurance premium, unless otherwise agreed in the insurance contract.

Clause 1, Article 1 of Law No. 31/2013/QH13 dated June 19, 2013 amending and supplementing a number of articles of the Law on Value-Added Tax with provisions on subjects not subject to value-added tax, including life insurance, health insurance, learner insurance, other insurance services related to people; livestock insurance, crop insurance, other agricultural insurance services; insurance for ships, equipment and other necessary tools for direct fishing.

Based on the above provisions, life insurance is not subject to value added tax. The insurance receipt is also a form of invoice, so the insurance company is not required to issue a value-added invoice for the premium.

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Documentary Editorial Board, DBRC「 Researching on Accounting, Taxes, Legal, Finances in Vietnam」, Dong Du International Accounting & Legal Consulting Group Vietnam, A member of OneSMP Singapore, Southeast Asia Business Consulting Network (www.japanvietnam.com.vn) 

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