What is the VAT rate for Ecotraz 250 used to treat lice and ticks on livestock in Vietnam?

What is the VAT rate for Ecotraz 250 used to treat lice and ticks on livestock in Vietnam?

According to the provisions at Point l, Clause 2, Article 8 of the Law on Value-Added Tax 2008, the VAT rate of 5% is applied for disease prevention and treatment drugs.

Based on the provisions at 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 amended by Clause 7, Article 147 of Decree 96/2023/ND-CP) as follows:

VAT Rate 5%

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11. Medical equipment and instruments include medical machines and tools: types of machines for scanning, radiation, imaging used for examination and treatment; specialized equipment and instruments for surgery, wound treatment, ambulances; devices for measuring blood pressure, heart rate, blood transmission; syringes; contraceptive tools; medical instruments and equipment with import licenses or registration certificates for circulation or dossiers for publication of standards according to legal regulations on healthcare or according to the list of medical equipment under specialized management of the Ministry of Health determined by commodity code according to Vietnam's export-import goods list issued together with Circular No. 14/2018/TT-BYT dated May 15, 2018, of the Minister of Health and amended, supplemented documents (if any).

Gauze, bandages, medical cotton, and medical sanitary pads; disease prevention and treatment drugs including finished drugs, raw materials for making drugs, excluding functional foods; vaccines; medical biological products, distilled water for compounding injectable drugs, infusion fluids; caps, uniforms, masks, surgical drapes, gloves, foot bags, shoe covers, cloths, specialized gloves for healthcare, breast implants, and dermal fillers (excluding cosmetics); chemical testing and sterilization materials used in healthcare.

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Furthermore, based on Official Dispatch 3861/TCHQ-TXNK of 2021 guiding the determination of VAT rates for the product Ecotraz 250 as follows:

"Pursuant to Clause 1, Article 4 of Circular No. 83/2014/TT-BTC dated June 26, 2014, of the Ministry of Finance: “1. When goods are specifically regulated as subjects not subject to VAT or applicable with VAT rates of 5% or 10% as prescribed in the Law on Value-Added Tax and guiding documents, they shall comply with such documents. Particularly goods that are agricultural products, livestock, aquaculture, seafood; specialized medical equipment and tools shall comply with regulations in Clauses 3, 4, 5 of this Article.”

Based on the opinion in Official Dispatch No. 1129/TY-QLT dated July 9, 2021, of the Department of Animal Health (Ministry of Agriculture and Rural Development):

"The product Ecotraz 250 from the manufacturer Eco Animal Health Limited (United Kingdom), with the main active ingredient being Amitraz, mainly used for treating parasitic diseases (ticks, lice, fleas, scabies) on cattle, sheep, and goats is classified as veterinary medicine as prescribed in Clause 21, Article 3 of the Veterinary Law 2015, and has been issued a registration certificate for circulation in Vietnam for Jebsen & Jessen Ingredients Vietnam Co., Ltd."

Based on the above regulations and the opinion in Official Dispatch No. 1129/TY-QLT dated July 9, 2021, from the Department of Animal Health (Ministry of Agriculture and Rural Development): The product Ecotraz 250 imported by Jebsen & Jessen Ingredients Vietnam Co., Ltd., which has been granted the circulation registration certificate No. 397/QLT-NK-17 dated May 4, 2017, is subject to a VAT rate of 5%."

Based on the above regulations, apply a VAT rate of 5% for the Ecotraz 250 used to treat lice and ticks on livestock imported by the company (which has been granted the circulation registration certificate).

What is the VAT rate for Ecotraz 250 used to treat lice and ticks on livestock in Vietnam? (Image from the Internet)

When is the time for VAT calculation for the Ecotraz 250 used to treat lice and ticks on livestock imported by the Company in Vietnam?

The point in time for VAT calculation for the Ecotraz 250 used to treat lice and ticks on livestock imported by the Company is determined according to Clause 6, Article 8 of Circular 219/2013/TT-BTC as the time of customs declaration registration.

What is the VAT taxable price for the Ecotraz 250 used to treat lice and ticks on livestock imported by the Company in Vietnam?

The VAT taxable price for the Ecotraz 250 used to treat lice and ticks on livestock imported by the Company is determined according to Clause 2, Article 7 of Circular 219/2013/TT-BTC as follows:

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

The import price at the port is determined according to regulations on import tax calculation.

- In case the imported goods are exempt from or have reduced import tax, the VAT taxable price is the import price plus (+) the import tax calculated according to the payable tax rate after exemption or reduction.