What is the VAT rate applied to imported blood bags in Vietnam?

What is the VAT rate applied to imported blood bags in Vietnam?

Based on Official Dispatch 5467/TCHQ-TXNK in 2021 guiding the VAT rate for blood bag products, the following is stated:

The General Department of Customs received official letter No. 01/2021/DNA-TCHQ dated April 20, 2021, from Southeast Asia Equipment Co., Ltd. requesting guidance on the VAT rate for blood bags. Regarding this issue, the General Department of Customs has the following opinion:

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2. Regarding the VAT rate for items imported by the company from August 01, 2021:

Based on Circular No. 43/2021/TT-BTC dated June 11, 2021, of the Ministry of Finance (effective from August 01, 2021) amending and supplementing Clause 11, Article 10 of Circular No. 219/2013/TT-BTC dated December 31, 2013, of the Ministry of Finance (amended and supplemented in Clause 8, Article 1 of Circular No. 26/2015/TT-BTC dated February 27, 2015, of the Ministry of Finance) which stipulates the VAT rate of 5% as follows:

“Medical equipment that has an import license or a circulation registration certificate or a dossier receipt note declaring standards as per medical laws or according to the list of medical equipment under specialized management of the Ministry of Health is determined by the commodity code in the list of export-import goods of Vietnam issued with Circular No. 14/2018/TT-BYT dated May 15, 2018, by the Minister of Health and its amendments, if any.

Based on the above provisions, in case the company meets the regulations concerning the import license or the circulation registration certificate or the dossier receipt note declaring standards as per medical laws or according to the list of medical equipment under specialized management of the Ministry of Health, determined by the commodity code in the list of export-import goods of Vietnam issued with Circular No. 14/2018/TT-BYT dated May 15, 2018, by the Minister of Health, the applied VAT rate is 5%.

Refer to the regulations in Clause 11, Article 10 of Circular 219/2013/TT-BTC (amended by Clause 8, Article 1 of Circular 26/2015/TT-BTC and Article 1 of Circular 43/2021/TT-BTC and further amended by Clause 7, Article 147 of Decree 96/2023/ND-CP) as follows:

5% Tax Rate

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11. Medical equipment and instruments include medical machinery and tools: types of scanners, projectors used for diagnosis and treatment; specialized medical devices and tools such as surgical, wound treatment equipment, ambulances; blood pressure, heart, and vascular measuring instruments, blood transfusion tools; syringes; contraceptive devices, medical instruments and devices with an import license or circulation registration certificate or dossier receipt note declaring standards as per medical laws or according to the list of medical equipment under specialized management of the Ministry of Health, determined by the commodity code in the list of export-import goods of Vietnam issued with Circular No. 14/2018/TT-BYT dated May 15, 2018, by the Minister of Health and its amendments, if any.

Medical gauze, bandages, and medical sanitary napkins; preventive and curative medicines including finished pharmaceuticals, raw materials for making medicines, excluding dietary supplements; vaccines; medical biological products, distilled water for preparing injection medicines, infusion solutions; hats, clothes, masks, surgical drapes, gloves, baby wrap covers, leg covers, towels, specialized medical gloves, breast implants, and dermal fillers (not including cosmetics); chemical testing, disinfection materials used in healthcare.

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Based on the above provisions, in case the company meets the regulations concerning the import license or the circulation registration certificate or the dossier receipt note declaring standards as per medical laws or according to the list of medical equipment for export and import that has been determined by the commodity code in the list of export-import goods of Vietnam issued with Circular 19/2024/TT-BYT (Circular 14/2018/TT-BYT expired from November 16, 2024, replaced by Circular 19/2024/TT-BYT), the applied VAT rate for blood bags is 5%.

What is the VAT rate applied to imported blood bags in Vietnam? (Image from the Internet)

What is the taxable price for calculating VAT on imported blood bags in Vietnam?

The taxable price for calculating VAT on imported blood bags is determined according to Clause 2, Article 7 of Circular 219/2013/TT-BTC as follows:

- The taxable price for calculating VAT is the price at the border gate plus (+) import tax (if any), plus (+) special consumption tax (if any), plus (+) environmental protection tax (if any).

The price at the border gate is determined according to regulations on the taxable price of imported goods.

- In case imported goods are exempt from, or have a reduction in, import tax, the taxable price for calculating VAT is the import price plus (+) the import tax determined according to the tax amount payable after being exempted, or reduced.

What is the deadline for submitting the VAT declaration in Vietnam for November 2024?

According to the provisions of point a, Clause 1, Article 8 of Decree 126/2020/ND-CP, VAT is declared monthly.

According to Clause 1, Article 44 of the Law on Tax Administration 2019, the deadline is as follows:

Deadline for submitting tax declaration dossiers

1. The deadline for submitting tax declaration dossiers for taxes declared monthly or quarterly is specified as follows:

a) No later than the 20th day of the next month following the month of tax obligation in the case of monthly declaration and payment;

b) No later than the last day of the first month of the subsequent quarter following the quarter of tax obligation in the case of quarterly declaration and payment.

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Thus, the deadline for submitting the VAT declaration for November 2024 is no later than December 20, 2024.