VAT for imported medical equipment

The General Department of Vietnam Customs issued letter no. 4655 / TCHQ-TXNK  dated July 18, 2019 regarding VAT for medical equipment. The contents is below:

The General Department of Customs received the Official Letter No. 5944 / VPCP-ĐMDN dated July 5, 2019 of the Government Office transferring the proposal of B.Braun Vietnam Co., Ltd. on obstacles to the value-added tax rate of the item. Medical equipment is not included in the list of Circular No. 30/2015 / TT-BYT and 14/2018 / TT-BYT. In this regard, the General Department of Customs has the following opinions:

Pursuant to Clause 8 Article 1 of Circular No. 26/2015 / TT-BTC dated February 27, 2015 of the Ministry of Finance amending and supplementing Clause 11, Article 10 of Circular No. 219/2013 / TT-BTC dated December 31, 2015 / 2013 of the Ministry of Finance stipulates:

8. Clause 11 of Article 10 is amended as follows:

Article 10: VAT Tax 5 %

“11. Medical equipment includes machinery and instruments serving healthcare such as: radiographic equipment serving medical examination and treatment, equipment and instruments for surgery and injury treatment; ambulances; instruments for blood pressure measurement, cardiography, blood infusion, syringes; birth control equipment, and other medical equipment certified by the Ministry of Health.

Cotton wool, bandages, gauze pads, and medical tampons; medicines including finished medicines and raw materials, except for functional foods; vaccines; bioproducts, distilled water to mix with injectable medicines or intravenous fluids; caps, clothing, facemasks, gloves, boots, medical towels, breast implants and skin fillers (not including cosmetics); chemicals used for testing and sterilization.”

Pursuant to Clause 5, Article 4 of Circular No. 83/2014 / TT-BTC of June 26, 2014 of the Ministry of Finance guiding the implementation of VAT according to the List of Vietnamese import goods prescribed:

Article 4. General guidance on the application of VAT rates according to the VAT tariff

5. Medical equipment and instruments, including special-use medical machinery and instruments such as scanners, screeners and radiography machines for medical examination and treatment; devices and instruments used exclusively in surgery and wound treatment; ambulances; blood pressure and cardiovascular meters, blood transfusion tools; syringes and needles; contraceptive devices and other special-use medical equipment, must comply with the VAT tariff promulgated together with this Circular.

B.Braun Vietnam Co., Ltd. Is suggested to strictly comply with the provisions in Circular No. 26/2015 / TT-BTC and Circular No. 83/2014 / TT-BTC.

The General Department of Customs informed B.Braun Vietnam Co., Ltd. to know and implement.

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