VCN – This is the question of Van Lang HealthCare Co., Ltd stated in Document No.18/CV-VLH asking for support on determining 2,000 units of Eliciae MV20 ventilator imported to serve humanitarian aid to the Government and Ministry of Health in Covid-19 prevention.
The General Department of Vietnam Customs said that ventilators for Covid-19 pandemic prevention are not subject to pay import duty but subject to VAT.
Regarding import duty, according to the General Department of Vietnam Customs, pursuant to Appendix II issued together with Decree 57/2020/ND-CP dated May 25, 2020 of the Government amending and supplementing a number of articles of the Decree 122/2016/ND-CP dated September 1, 2016 of the Government on the Export Tariff, Preferential Import Tariff, list of goods and absolute tax rate, mixed tax, import tax exceeding quota and Decree Decree 125/2017/ND-CP dated November 16, 2017 amending and supplementing a number of articles of Decree 122/2016/ND-CP, the ventilator has HS code of 9019.20.00 “Ozone therapy, oxygen therapy, by inhalation, artificial respirator or other therapeutic respirators" and item number 9020.20.00 "Other breathing appliances" have preferential import tax rate of 0%.
|Illustration image. Source: Internet|
Regarding the VAT policy, the General Department of Vietnam Customs said that, in Clause 19, Article 5 of the Law on VAT No. 13/2008/QH12 dated June 3, 2008, “Imported goods in case of humanitarian aid, grant aid; gifts to state agencies, political organizations, socio-political organizations, socio-political organizations-professional, social organizations, socio-professional organizations, people's armed forces units; presents and gifts for individuals in Vietnam in accordance to the level prescribed by the Government, goods and services sold to foreign organizations and individuals, international organizations for humanitarian aid, grant aid to Vietnam" are not subject to VAT.
Also in Clause 9, Article 3 of Decree No. 209/2013/ND-CP dated December 18, 2013 of the Government stipulating specifically on a number of articles of the Law on VAT, "Imported goods are specified in Clause 19, Article 5 of the Law on VAT is specified as follows: a) Imported humanitarian aid and grant aid must be approved by a competent state agency" is not subject to VAT.
However, based on the provisions on aid goods in Decree 93/2009/ND-CP dated October 22, 2009 of the Government regulating foreign non-governmental aid (replaced by Decree 80/2020/ND-CP dated July 8, 2020 of the Government on management and use of grant aid which is not under official development assistance of foreign agencies, organizations and individuals for Vietnam and effective from September 17, 2020), Decree 56/2020/ND-CP dated May 25, 2020 of the Government regulating the management and use of official development assistance fund and preferential loans of foreign donors, Decree 50/2020/ND-CP dated 20/4/2020 regulating the reception, management and use of international aid urgently for relief and recovery of consequences of natural disasters, these decrees have the scope to regulate the receipt, management and use of aid provided by foreign agencies, organizations and individuals to Vietnamese agencies, organizations and individuals.
In addition, according to Clause 19, Article 4 of Circular 219/2013/TT-BTC dated December 31, 2013 guiding the implementation of the Law on VAT and Decree No. 209/2013/ND-CP dated December 18, 2013, imported goods in case of humanitarian aid or grant aid must be certified by the Ministry of Finance or Department of Finance.
Clause 8 Article 1 of Circular 26/2015/TT-BTC dated February 27, 2015 providing guidance on VAT and tax management in Decree 12/2015/ND-CP of the Government detailing the implementation of the Law on amending and supplementing taxes and amending and supplementing a number of articles of Circular 39/2014/TT-BTC of the Ministry of Finance regarding sales invoices and service provision amending and supplementing in Clause 11, Article 10, Circular 219/2013/TT-BTC stipulates: “Medical equipment and instruments, including specialized medical machines and instruments such as: scanning machine, used for medical examination and treatment; specialized equipment and tools for surgery, wound treatment, ambulance; blood pressure, heart, pulse, blood transfusion devices; needles; contraceptive tools and other specialized medical tools and equipment as certified by the Ministry of Health” have a tax rate of 5%.
Therefore, based on the above provisions, the General Department of Vietnam Customs emphasized that, in the case of Van Lang Healthcare Co., Ltd. importing 2,000 units of Eliciae MV20 ventilators from abroad, has completed import procedures, then, grant aid to the Government of Vietnam (under domestic aid) is not in the cases of importing humanitarian aid goods, foreign grant aid to Vietnam and not in the cases specified by the Ministry of Finance or the Department of Finance confirmed as aid goods. Therefore, the company's imported goods are not subject to VAT as prescribed in Clause 19 Article 5 of the Law on VAT No. 13/2008/QH11; Clause 9 Article 3 of Decree No. 209/2013 / ND-CP and Clause 19 Article 4 of Circular 219/2013/TT-BTC.
The General Department of Vietnam Customs added that if the imported ventilator of the company is confirmed by the Ministry of Health as specialized medical instruments and equipment in accordance with the provisions of Circular 26/2015/TT-BTC, the companies have to pay VAT at the rate of 5%. If there is no certification from the Ministry of Health, the VAT rate of 10% will apply.
Regarding the commodity management policy, the General Department of Vietnam Customs proposed Van Lang Healthcare Co., Ltd. to comply with the provisions of Decree 36/2016/ND-CP of the Government on the management of medical equipment, Decree Decree 169/2018/ND-CP amending and supplementing a number of articles of Decree 36/2016/ND-CP, Decree No. 03/2020/ND-CP amending and supplementing a number of articles of Decree 36 / 2016 / ND-CP and Decree 169/2018/ND-CP.
By Tuấn Kiệt/Thanh Thuy