Official Letter 161/TCHQ-TXNK 2025 on Value-Added Tax for Veterinary Lubricant Gel Products

MINISTRY OF FINANCE GENERAL DEPARTMENT OF CUSTOMS -------	SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness ---------------
No: 161/TCHQ-TXNK Subject: VAT for Veterinary Lubricant Gel Products	Hanoi, January 9, 2025

 

To: Asia-Pacific Export-Import Joint Stock Company
(G42, LK19A, LK19B Resettlement Area, X7 Le Trong Tan Street, Duong Noi, Ha Dong, Hanoi)

In response to the letter No. 0512/CV-APC dated December 12, 2024, from Asia-Pacific Export-Import Joint Stock Company requesting guidance on VAT for veterinary lubricant gel products, the General Department of Customs provides the following opinion:

On April 23, 2024, the Ministry of Finance issued Circular No. 25/2024/TT-BTC, which repeals Circular No. 83/2014/TT-BTC dated June 26, 2014, guiding the implementation of VAT according to the Vietnam Import Goods List.

According to the VAT Law No. 13/2008/QH13:

• Point 1, Clause 2, Article 8 stipulates that the VAT rate of 5% applies to "disease prevention and treatment medicines; pharmaceutical products, medicinal materials used for producing medicines for disease treatment and prevention."

• Clause 3, Article 8 stipulates: "A VAT rate of 10% applies to goods and services not specified in Clause 1 and Clause 2 of this Article."

Based on Article 1 of Circular No. 43/2021/TT-BTC dated June 11, 2021, amending and supplementing Clause 11, Article 10 of Circular No. 219/2013/TT-BTC dated December 31, 2013, of the Ministry of Finance (which was amended and supplemented by Circular No. 26/2015/TT-BTC dated February 27, 2015), the VAT rate of 5% applies to: "Medical cotton, bandages, medical gauze, and sanitary napkins; disease prevention and treatment medicines, including finished medicines, raw materials for making medicines, excluding functional foods; vaccines; medical biological products, distilled water for preparing injectable drugs, intravenous solutions; medical clothing such as hats, coats, masks, surgical gowns, gloves, shoe covers, towels, and specialized medical gloves, breast pads, and dermal fillers (excluding cosmetics); chemicals for medical testing, disinfection used in healthcare."

Based on Article 11 of Circular No. 219/2013/TT-BTC dated December 31, 2013, of the Ministry of Finance, it is stipulated: "A VAT rate of 10% applies to goods and services not specified in Articles 4, 9, and 10 of this Circular."

Based on the above regulations, in the case of veterinary lubricant gel, if it is identified as a disease prevention and treatment medicine used in veterinary medicine (excluding functional foods), it falls under the 5% VAT rate. If it is not identified as such, it will be subject to the 10% VAT rate.

The General Department of Customs informs Asia-Pacific Export-Import Joint Stock Company accordingly.

Recipients: As above; Deputy General Director Âu Anh Tuấn (for reporting); File: VT, TXNK.

On behalf of the GENERAL DIRECTOR DEPUTY DIRECTOR OF EXPORT-IMPORT CUSTOMS DEPARTMENT Đang Son Tung

See details here.