VAT rate of 5% applies to veterinary medicine

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An officer of the Customs Branch managing Bac Giang Industrial Zones instructs enterprises in the customs declaration. Photo: Thai Binh

According to provisions at Point 1, Clause 2, Article 8 of the Law on VAT, preventive and curative medicines are subject to the 5% VAT rate.

Clause 11, Article 10 of Circular 219/2013/TT-BTC of the Ministry of Finance, which is amended and supplemented in Clause 8, Article 1 of Circular 26/2015/TT-BTC, stipulates that “preventive and curative medicines include: including finished medicine, raw materials for the production of medicines, except for supplemental foods” are subject to the 5% VAT rate.

Officers of the Customs Branch managing Bac Giang Industrial Zones instruct enterprises in the customs declaration. Photo: Thai Binh

Clause 1, Article 4 of Circular 83/2014/TT-BTC of the Ministry of Finance provides that “If goods are not subject to VAT or apply the VAT rate of 5% or 10 under the provisions of the Law on VAT and guidance documents, the tax rate will comply with those documents”.

Based on the above regulations, the General Department of Vietnam Customs said that if the imported goods are identified by specialized management agencies as veterinary medicine following the law on veterinary medicine and have been granted a permit for trading in Vietnam will be subject to the VAT rate of 5%.

The General Department of Vietnam Customs requests Advance Phamar Vietnam Co., Ltd. to work with the customs office where the import procedures are carried out for specific instructions.