Hospitals are not subject to VAT, and medical institutions are exempted from VAT for providing medical services after the reform.
1. The scope of VAT is mainly related to the transportation industry and part of the modern service industry; the transportation industry includes: land transportation, waterway transportation, air transportation and pipeline transportation.
2. Modern services include: research and development and technical services, information technology services, cultural and creative services, logistics support services, tangible movable property leasing services, and forensic consulting services.
Expanded Information:
Types of VAT Tax:
Based on the different ways of deducting the tax included in the outward purchase of fixed assets, VAT can be categorized as follows:
1. Production VAT
Production type VAT means that when levying VAT, only the tax on that part of the means of production belonging to non-fixed asset items can be deducted, and the tax contained in the value of fixed assets is not allowed to be deducted. This type of VAT is levied on an object broadly equivalent to the gross domestic product, hence the name production-based VAT.
2. Income-based VAT
Income-based VAT means that only the tax contained in the depreciated portion of fixed assets is allowed to be deducted for the collection of VAT, and the depreciated portion is not allowed to be included in the amount of deductions. The object of taxation of this type of VAT is broadly equivalent to national income, hence the name income-based VAT.
Baidu Encyclopedia-Value Added Tax