What is the VAT rate for the Import of silicone breast implants in Vietnam?

What is the formula for calculating VAT for imports of silicone breast implants in Vietnam?

Pursuant to the provisions of Article 6 of Circular 219/2013/TT-BTC, the formula for calculating VAT for imports of silicone breast implants is as follows:

What is the VAT Rate for the Import of silicone breast implants in Vietnam?

According to the guidance in Official Dispatch 51358/CTHN-TTHT of 2023, the VAT rate is as follows:

In cases where a company imports medical equipment falling under the provisions of Article 1 of Circular No. 43/2021/TT-BTC amending and supplementing Clause 11, Article 10 of Circular No. 219/2013/TT-BTC dated December 31, 2013, by the Ministry of Finance, a VAT rate of 5% applies.

The VAT rates mentioned in Article 10 and Article 11 are uniformly applied to each type of goods and services in import, production, processing, or commercial business stages as stipulated in Article 11 of Circular No. 219/2013/TT-BTC.

Referring to the provisions 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 as 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 machinery and instruments: types of scanning, screening, filming machines used for diagnosis and treatment; specialized equipment and tools for surgery, wound treatment, ambulances; blood pressure, heart, and vascular instruments, blood transfusion instruments; syringes; contraceptive instruments;** breast implants and skin fillers (excluding cosmetics); testing chemicals, disinfectants used in healthcare.

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According to the above provisions, the import of silicone breast implants is subject to a VAT rate of 5%.

What is the VAT Rate for the Import of silicone breast implants in Vietnam? (Image from Internet)

How to determine the taxable price for imports of silicone breast implants in Vietnam?

The taxable price for imports of silicone breast implants is determined according to Clause 2, Article 7 of Circular 219/2013/TT-BTC as follows:

Taxable Price

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2. For imported goods, it is the price at the import border plus (+) import duty (if applicable), plus (+) special consumption tax (if applicable), plus (+) environmental protection tax (if applicable). The import border price is determined according to the regulations on the taxable price for imported goods.

In cases where imported goods are exempt or reduced from import duty, the VAT taxable price is the import price plus (+) the import duty determined according to the tax amount payable after exemption or reduction.

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22. The taxable price for the types of goods and services specified from Clauses 1 to 21 of this Article includes surcharges and additional fees beyond the price of goods and services that the business establishment is entitled to.

In cases where a business establishment applies a commercial discount for customers (if any), the VAT taxable price is the selling price after the commercial discount for customers. If the commercial discount is based on the quantity, sales volume of goods, services, then the discount on goods sold is adjusted on the sales invoice for the final purchase or the next period. If the discount is issued at the end of the discount program (period), it must be issued with an adjusting invoice along with a list of invoices needing adjustments, amounts, and adjusted tax. Based on the adjusting invoice, the seller and buyer adjust purchase, sales revenue, output tax, and input tax.

The taxable price is determined in Vietnamese Dong. In cases where the taxpayer has revenue in foreign currency, it must be converted into Vietnamese Dong at the average exchange rate on the interbank foreign exchange market announced by the State Bank at the time the revenue is generated to determine the taxable price.

The VAT taxable price for imports of silicone breast implants, which are contraceptive instruments, is the import border price plus (+) import duty (if applicable), plus (+) special consumption tax (if applicable), plus (+) environmental protection tax (if applicable). The import border price is determined according to the regulations on the taxable price for imported goods.

In cases where imports of silicone breast implants are exempt or reduced from import duty, the VAT taxable price is the import price plus (+) the import duty determined according to the tax amount payable after exemption or reduction.