On 11 June 2021, Ministry of Finance released Circular 43/2021/TT-BTC (“Circular 43”) amending and supplementing Clause 11, Article 10 of Circular 219/2013/TT-BTC on implementation of Value Added Tax (“VAT”) laws (previously amended and supplemented by Circular 26/2015/TT-BTC).
This Circular takes effect from 01 August 2021.
Accordingly, for being entitled to the VAT rate of 5%, the medical equipment and instruments must satisfy one of the following conditions instead of the requirement of having confirmation from Ministry of Health (“MoH”) under the old regulations:
- Having Import License;
- Having Certificate of circulation registration;
- Having Receipt of standard publication dossiers in accordance with the Laws on health;
- Being included in the List of medical equipment under the specialized management of Ministry of Health, which is determined with commodity codes according to the List of exported and imported goods of Vietnam promulgated together with Circular 14/2018/TT-BYT dated 15 May 2018 of the MoH and its corresponding amendments/supplements (if any).
Besides, some other medical products listed in this Circular (i.e. medical cotton, bandages, gauze and tampons; preventive and curative drugs, including finished drugs and medicinal ingredients, except for functional foods, etc.) and used for medical purposes shall also subject to 5% VAT rate without the requirements of confirmation from Ministry of Health as previous regulations.
We do trust the above points are notable and sufficient, but should you have any questions or need a deeper discussion on this issue, please do not hesitate to contact us.