tax imposed by section 3901 for such period, such 
excess shall be treated as an overpayment of the tax 
imposed by section 3901. 
‘‘(2) TIME WHEN OVERPAYMENT ARISES.—Any 
overpayment under paragraph (1) for any taxable 
period shall be treated as arising on the later of— 
‘‘(A) the due date for the return for such 
period, or 
‘‘(B) the date on which the return is filed. 
‘‘Subchapter D—Administration 
‘‘Sec. 3921. Seller liable for tax. 
‘‘Sec. 3922. Tax invoices. 
‘‘Sec. 3923. De minimis exemption. 
‘‘Sec. 3924. Time for filing return and claiming credit; deposits of tax. 
‘‘Sec. 3925. Treatment of related businesses, etc. 
‘‘Sec. 3926. Secretary to be notified of certain events. 
‘‘Sec. 3927. Regulations. 
‘‘SEC. 3921. SELLER LIABLE FOR TAX. 
‘‘The person selling the property or services shall be 
liable for the tax imposed by section 3901. 
‘‘SEC. 3922. TAX INVOICES. 
‘‘(a) SELLER MUST GIVE PURCHASER TAX IN-
VOICE.—Any taxable person engaging in a taxable trans-
action shall give the purchaser a tax invoice with respect 
to such transaction if the seller has reason to believe that 
the purchaser is a taxable person. 
‘‘(b) CONTENT OF INVOICE.—The tax invoice re-
quired by subsection (a) with respect to any transaction 
shall set forth— 
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‘‘(1) the name and identification number of the 
seller, 
‘‘(2) the name of the purchaser, 
‘‘(3) the amount of the tax imposed by section 
3901, and 
‘‘(4) such other information as may be pre-
scribed by regulations. 
‘‘(c) NO CREDIT WITHOUT INVOICE.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graphs (2) and (3), a purchaser may claim a credit 
with respect to a transaction only if the purchaser— 
‘‘(A) has received from the seller and has 
in the purchaser’s possession a tax invoice 
which meets the requirements of subsection (b), 
and 
‘‘(B) is named as the purchaser in such in-
voice. 
‘‘(2) EMPLOYEES OR OTHER AGENTS NAMED IN 
INVOICES.—To the extent provided in regulations, 
the naming of an employee or other agent of the 
purchaser shall be treated as the naming of the pur-
chaser. 
‘‘(3) WAIVER
OF
INVOICE
REQUIREMENT
IN 
CERTAIN CASES.—To the extent provided in regula-
tions, paragraph (1) shall not apply— 
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‘‘(A) where the purchaser without fault on 
the purchaser’s part fails to receive or fails to 
have in the purchaser’s possession a tax invoice, 
‘‘(B) to a taxable transaction (or category 
of transactions) where— 
‘‘(i) the amount involved is de mini-
mis, or 
‘‘(ii) the information required by sub-
section (b) can be reliably established by 
sampling or by another method and can be 
adequately documented. 
‘‘(d) TIME FOR FURNISHING INVOICE.—Any invoice 
required to be furnished by subsection (a) with respect to 
any transaction shall be furnished not later than 15 busi-
ness days after the tax point for such transaction. 
‘‘SEC. 3923. DE MINIMIS EXEMPTION. 
‘‘(a) IN GENERAL.—Under regulations, a person— 
‘‘(1) whose aggregate taxable transactions for 
the calendar year do not exceed $20,000, and 
‘‘(2) whose aggregate taxable transactions for 
the next calendar year can reasonably be expected 
not to exceed $20,000, 
may elect to be treated as a person who is not a taxable 
person for the next calendar year. 
‘‘(b) EXCEPTIONS.—Subsection (a) shall not apply— 
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‘‘(1) to any sale or leasing of real property, and 
‘‘(2) to any importing of property. 
‘‘(c) TERMINATION
OF ELECTION.—Any election 
under subsection (a) for a calendar year shall terminate 
if the aggregate taxable transactions— 
‘‘(1) for the first calendar quarter in such year 
exceed $7,000, 
‘‘(2) for the first 2 calendar quarters in such 
year exceed $12,000, or 
‘‘(3) for the first 3 calendar quarters in such 
year exceed $17,000. 
Such termination shall take effect on the first day of the 
second month following the close of the first period in 
which the requirements of paragraph (1), (2), or (3) are 
met. 
‘‘(d) TAXABLE AMOUNT TREATED
AS ZERO
FOR 
ZERO-RATED TRANSACTIONS.—For purposes of this sec-
tion, the taxable amount of any zero-rated transaction 
shall be treated as zero. 
‘‘(e) CONDITION OF ELECTION.—In the case of a per-
son who is a taxable person for any period, an election 
under subsection (a) may be made for succeeding periods 
only with the consent of the Secretary. Such consent shall 
be conditioned on placing such person, for all succeeding 
periods, in the same position with respect to the tax im-
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posed by section 3901 (and the credit allowed by section 
3916) he would have been in if all property and services 
he holds at the time he becomes a nontaxable person had 
been acquired as a nontaxable person. 
‘‘(f) CASUAL SALES AND LEASES OF REAL PROP-
ERTY EXCLUDED.—For purposes of this section, the term 
‘taxable transaction’ does not include a transaction which 
is treated as a commercial-type transaction solely by rea-
son of section 3904(b)(1)(A). 
‘‘SEC. 3924. TIME FOR FILING RETURN AND CLAIMING 
CREDIT; DEPOSITS OF TAX. 
‘‘(a) FILING RETURN.—Before the first day of the 
second calendar month beginning after the close of each 
taxable period, each taxable person shall file a return of 
the tax imposed by section 3901 on taxable transactions 
having a tax point within such taxable period. 
‘‘(b) CREDIT ALLOWED FOR TAXABLE PERIOD IN 
WHICH PURCHASER RECEIVES INVOICE.— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), a credit allowable by section 3916 with 
respect to a transaction may be allowed only for the 
first taxable period by the close of which the tax-
payer— 
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‘‘(A) has paid or accrued amounts properly 
allocable to the tax imposed by section 3901 
with respect to such transaction, and 
‘‘(B) has a tax invoice (or equivalent) with 
respect to such transaction. 
‘‘(2) USE FOR LATER PERIOD.—Under regula-
tions, a credit allowable by section 3916 may be al-
lowed for a period after the period set forth in para-
graph (1). 
‘‘(c) TAXABLE PERIOD.—For purposes of this chap-
ter— 
‘‘(1) IN GENERAL.—The term ‘taxable period’ 
means a calendar quarter. 
‘‘(2) EXCEPTION.— 
‘‘(A) ELECTION OF 1-MONTH PERIOD.—If 
the taxpayer so elects, the term ‘taxable period’ 
means a calendar month. 
‘‘(B) OTHER PERIODS.—To the extent pro-
vided in regulations, the term ‘taxable period’ 
includes a period, other than a calendar quarter 
or month, selected by the taxpayer. 
‘‘(d) TAX POINT.—For purposes of this chapter— 
‘‘(1) CHAPTER 1 RULES
WITH
RESPECT
TO 
SELLER GOVERN.—Except as provided in paragraph 
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(2), the tax point for any sale of property or services 
is the earlier of— 
‘‘(A) the time (or times) when any income 
from the sale should be treated by the seller as 
received or accrued (or any loss should be taken 
into account by the seller) for purposes of chap-
ter 1, or 
‘‘(B) the time (or times) when the seller 
receives payment for the sale. 
‘‘(2) IMPORTS.—In the case of the importing of 
property, the tax point is when the property is en-
tered, or withdrawn from warehouse, for consump-
tion in the United States. 
‘‘(e) MONTHLY DEPOSITS REQUIRED.—To the extent 
provided in regulations, monthly deposits may be required 
of the estimated liability for any taxable period for the 
tax imposed by section 3901. 
‘‘SEC. 3925. TREATMENT OF RELATED BUSINESSES, ETC. 
‘‘(a) GENERAL RULE.—For purposes of this chapter 
(other than section 3923), to the extent provided in regu-
lations, the taxpayer may elect— 
‘‘(1) to treat as 1 taxable person 2 or more 
businesses which may be treated under section 52(b) 
as 1 employer, and 
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‘‘(2) to treat as separate taxable persons sepa-
rate divisions of the same business. 
‘‘(b) DE MINIMIS EXEMPTION.—For purposes of sec-
tion 3923, all businesses which are under common control 
(within the meaning of section 52(b)) shall be treated as 
1 business. 
‘‘SEC. 3926. SECRETARY TO BE NOTIFIED OF CERTAIN 
EVENTS. 
‘‘To the extent provided in regulations, each person 
engaged in a business shall notify the Secretary (at such 
time or times as may be prescribed by such regulations) 
of any change in the form in which a business is conducted 
or any other change which might affect the liability for 
the tax imposed by section 3901 or the amount of such 
tax or any credit against such tax, or otherwise affect the 
administration of such tax in the case of such person. 
‘‘SEC. 3927. REGULATIONS. 
‘‘The Secretary shall prescribe such regulations as 
may be necessary to carry out the purposes of this chap-
ter. 
‘‘Subchapter E—Definitions and Special 
Rules; Treatment of Certain Transactions 
‘‘Sec. 3931. Definitions. 
‘‘Sec. 3932. Special rules. 
‘‘Sec. 3933. Personal use by owner of business property or services. 
‘‘Sec. 3934. Gift of business property or services. 
‘‘Sec. 3935. Special rules for dispositions of nonbusiness real property. 
‘‘Sec. 3936. Special rule for insurance contracts. 
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‘‘SEC. 3931. DEFINITIONS. 
‘‘(a) PROPERTY.—For purposes of this chapter, the 
term ‘property’ means any tangible property. 
‘‘(b) BUSINESS.—For purposes of this chapter, the 
term ‘business’ includes— 
‘‘(1) a trade, and 
‘‘(2) an activity regularly carried on for profit. 
‘‘(c) EMPLOYEE.—For purposes of this chapter, the 
term ‘employee’ has the meaning such term has for pur-
poses of chapter 24 (relating to withholding). 
‘‘(d) PERSON.—For purposes of this chapter, the 
term ‘person’ includes any governmental entity. 
‘‘(e) BUSINESS DAY.—For purposes of this chapter, 
the term ‘business day’ means any day other than Satur-
day and Sunday and other than a legal holiday (within 
the meaning of section 7503). 
‘‘(f) UNITED STATES.—For purposes of this chapter, 
the term ‘United States’, when used in a geographical 
sense, includes a Commonwealth and any possession of the 
United States. 
‘‘SEC. 3932. SPECIAL RULES. 
‘‘(a) COORDINATION WITH SUBTITLE A.—For pur-
poses of subtitle A— 
‘‘(1) TREATMENT OF CREDIT.—Any credit al-
lowable to a taxpayer under section 3916 which is 
attributable to any property or services shall be 
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100 
treated as a reduction in the amount paid or in-
curred by the taxpayer for such property or services. 
‘‘(2) AMOUNT OF DEDUCTION FOR TAX.—The 
amount allowable as a deduction for the tax imposed 
by section 3901 shall be determined without regard 
to any credit allowable under section 3916. 
‘‘(3) COMPUTATION
OF
PERCENTAGE
DEPLE-
TION.—For purposes of sections 613 and 613A— 
‘‘(A) gross income shall be reduced by the 
amount of the tax imposed by section 3901, 
and 
‘‘(B) taxable income shall be determined 
without regard to any deduction allowed for 
such tax. 
‘‘(b) SPECIAL RULE SALE OF PROPERTY INCLUDES 
INCIDENTAL PERFORMANCE
OF SERVICES.—For pur-
poses of this chapter, if in connection with the sale of any 
property there is an incidental performance of services, 
such performance of services shall be treated as part of 
the sale of such property. 
‘‘(c) SPECIAL RULE WHERE PERFORMANCE
OF 
SERVICES INCLUDES INCIDENTAL TRANSFER OF PROP-
ERTY.—For purposes of this chapter, if in connection with 
the performance of any services there is an incidental 
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101 
transfer of property, such transfer shall be treated as part 
of the performance of such services. 
‘‘(d) AUTHORITY
TO
ZERO
RATE
DE
MINIMIS 
TRANSACTIONS, ETC.—The Secretary may prescribe regu-
lations providing that the rate of tax shall be zero for a 
taxable transaction (or category of such transactions) 
where— 
‘‘(1) the amount involved is de minimis, or 
‘‘(2) the revenue raised by taxing the trans-
action is not sufficient to justify the administrative 
and other costs involved in the payment and collec-
tion of the tax. 
‘‘(e) IMPORTING TREATED
AS SALE
AND PUR-
CHASE.—For purposes of this chapter, the importing of 
any property into the United States shall be treated as 
both a sale and purchase of such property by the person 
importing such property. 
‘‘(f) SUBCHAPTER S CORPORATION TREATED
AS 
NOT A CORPORATION.—For purposes of this chapter, an 
S corporation (as defined in section 1361(a)) shall be 
treated as a person which is not a corporation. 
‘‘(g) USE INCLUDES HELD FOR USE.—For purposes 
of this chapter, property and services held for use by any 
person shall be treated as used by the person. 
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102 
‘‘SEC. 3933. PERSONAL USE BY OWNER OF BUSINESS PROP-
ERTY OR SERVICES. 
‘‘(a) GENERAL RULE.—If any business property or 
services are used by an owner of the taxpayer for personal 
purposes, for purposes of this chapter such use shall be 
treated as a taxable transaction. 
‘‘(b) TAXABLE AMOUNT.—In the case of a use de-
scribed in subsection (a), for purposes of this chapter, the 
taxable amount shall be— 
‘‘(1) except as provided in paragraph (2), the 
fair market value of the property or the services, or 
‘‘(2) if such use is only the temporary use of 
property, the fair rental value of such use. 
‘‘(c) DEFINITIONS.—For purposes of this section— 
‘‘(1) BUSINESS PROPERTY OR SERVICES.—The 
term ‘business property or services’ means any prop-
erty or services if a sale of such property, or the per-
formance of such services, by the taxpayer would be 
a taxable transaction. 
‘‘(2) OWNER.—The term ‘owner’ means— 
‘‘(A) in the case of a sole proprietorship, 
the proprietor, 
‘‘(B) in the case of any other business en-
terprise, any holder of a beneficial interest in 
the corporation, partnership, or other entity, 
and 
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103 
‘‘(C) any member of the family (within the 
meaning of section 267(c)(4)) of an individual 
described in subparagraph (A) or (B). 
‘‘SEC. 3934. GIFT OF BUSINESS PROPERTY OR SERVICES. 
‘‘(a) GENERAL RULE.—In the case of any gift of 
business property or services, for purposes of this chap-
ter— 
‘‘(1) such gift shall be treated as a taxable 
transaction, and 
‘‘(2) the taxable amount shall be the amount 
determined under section 3933(b). 
‘‘(b) GIFTS RELATED TO BUSINESS PROMOTION AC-
TIVITIES.—For purposes of subsection (a), the term ‘gift’ 
includes any gift of property or services transferred in con-
nection with business promotion activities. 
‘‘SEC. 3935. SPECIAL RULES FOR DISPOSITIONS OF NON-
BUSINESS REAL PROPERTY. 
‘‘(a) IN GENERAL.—In the case of any sale of real 
property which is treated as a commercial-type transaction 
solely by reason of section 3904(b)(1)(A), for purposes of 
this chapter, the taxable amount shall be the excess (if 
any) of— 
‘‘(1) the amount realized on such sale, over 
‘‘(2) the adjusted cost to the taxpayer of such 
real property. 
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104 
‘‘(b) ADJUSTED COST.—For purposes of subsection 
(a)— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the term ‘adjusted cost’ means, with re-
spect to any property, the basis of such property in-
creased by expenditures properly chargeable to cap-
ital account (other than taxes or other carrying 
charges described in section 266) for periods during 
the holding period for such property. 
‘‘(2) TRANSITIONAL RULE.—The adjusted cost 
of any property shall include only amounts incurred 
during periods after December 31, 2009. 
‘‘(c) VALUE ADDED TAX NOT TAKEN INTO AC-
COUNT.—For purposes of this section, the amount realized 
on any sale of real property shall not include any amount 
attributable to the tax imposed by this chapter. 
‘‘SEC. 3936. SPECIAL RULE FOR INSURANCE CONTRACTS. 
‘‘In the case of any contract of insurance, for pur-
poses of this chapter, the taxable amount is the excess 
of— 
‘‘(1) the portion of the premium attributable to 
insurance coverage, over 
‘‘(2) the actuarial cost to the insurer of pro-
viding such insurance coverage.’’ 
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105 
(b) CLERICAL AMENDMENT.—The table of chapters 
for subtitle D of the Internal Revenue Code of 1986 is 
amended by inserting before the item relating to chapter 
31 the following: 
‘‘CHAPTER 30. VALUE ADDED TAX’’ 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to transactions occurring after De-
cember 31, 2009. 
SEC. 1002. REVENUE FROM VALUE ADDED TAX TO FUND 
NATIONAL HEALTH CARE TRUST FUND. 
(a) IN GENERAL.—Subchapter A of chapter 98 of the 
Internal Revenue Code of 1986 (relating to trust fund 
code) is amended by adding at the end the following new 
section: 
‘‘SEC. 9511. NATIONAL HEALTH CARE TRUST FUND. 
‘‘(a) CREATION OF TRUST FUND.—There is estab-
lished in the Treasury of the United States a trust fund 
to be known as the ‘National Health Care Trust Fund’, 
consisting of such amounts as may be appropriated or 
credited to the Trust Fund as provided in this section or 
section 9602(b). 
‘‘(b) TRANSFERS TO TRUST FUND.—There are here-
by appropriated to the National Health Care Trust Fund 
amounts equivalent to amounts received in the Treasury 
from the tax imposed under section 3901 (relating to the 
value added tax). 
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106 
‘‘(c) EXPENDITURES FROM TRUST FUND.—Amounts 
in the National Health Care Trust Fund shall be available 
only for purposes of making expenditures to carry out the 
program of health benefits under the National Health In-
surance Act.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for such subchapter A is amended by adding at the end 
the following new item: 
‘‘Sec. 9511. National Health Care Trust Fund.’’. 
TITLE XI—STUDY AND DEVELOP-
MENT 
OF 
COST 
CONTROL 
MECHANISMS 
SEC. 1101. DEVELOPMENT OF COST CONTROL MECHA-
NISMS. 
(a) STUDY.—The Secretary of Health and Human 
Services shall conduct a study analyzing various methods 
to control the costs of providing personal health benefits 
under this Act, and shall include in such study an analysis 
of the effects on such costs of medical malpractice claims 
and the purchase of medical malpractice liability insurance 
by providers of the benefits. 
(b) REPORTS TO CONGRESS.—Not later than October 
1, 2011, the Secretary shall submit a report to Congress 
describing the study conducted under subsection (a), and 
shall include in the report recommendations on methods 
to control costs under this Act, including recommenda-
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107 
tions on the development of a system under which medical 
malpractice claims brought against providers of benefits 
under this Act may be resolved in an equitable and cost- 
effective manner. Not later than April 1, 2012, the Sec-
retary shall promulgate regulations to implement the rec-
ommendations made in the report. 
Æ 
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