VAT Rate Applicable to the Business of Veterinary Vaccines?

Section 4 of Official Dispatch 16028/BTC-CST in 2014 guiding value-added tax (VAT) for veterinary drugs, vaccines used for veterinary purposes, raw materials for producing veterinary drugs, equipment, specialized tools for the veterinary sector issued by the Ministry of Finance stipulates:

"The Ministry of Finance provides guidance on the application of VAT policy for items such as veterinary drugs, raw materials for producing veterinary drugs, vaccines used for veterinary purposes, equipment, specialized tools for the veterinary sector as follows:...
4. Items such as veterinary drugs, raw materials for producing veterinary drugs, vaccines used for veterinary purposes, distilled water and solutions for preparing veterinary injections, specialized equipment and tools for the veterinary sector are subject to a VAT rate of 5% when imported; therefore, the same 5% VAT rate is applicable at the commercial business stage."

Thus, the business of vaccines used for veterinary purposes will be applied a VAT rate of 5%.

Sincerely!