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IMPORTED GOODS TO CONTRIBUTE CAPITAL ARE NOT REQUIRED TO PAY VAT

VCN- Enterprises which contribute capital to establish are not required to declare and pay VAT in accordance with Point a, Clause 7 of Circular 219/2013 / TT-BTC.

imported goods to contribute capital are not required to pay vat
Customs operations at Cai Lan port, Quang Ninh province. Photo: Thu Trang.

That is a response of the General Department of Vietnam Customs for the proposal of Nghi Phong Joint-Venture Company Limited to import machinery and equipment to Vietnam to contribute capital without paying VAT on import.

According to analysis of the General Department of Vietnam Customs, Article 2 of Circular 219/2013 / TT-BTC guides the implementation of the Law on Value Added Tax as follows: The taxable objects are goods and services used for production, business and consumption in Vietnam (including goods and services purchased from organizations and individuals overseas), excluding those not subject to VAT as provided in Article 4 of this Circular.

In addition, Article 3 of Circular 219/2013 / TT-BTC also stipulates: “VAT payers are organizations and individuals producing and trading goods and services subject to VAT in Vietnam, without discriminating types of business, form, and organization of business (hereinafter referred to as business establishments) and organizations and individuals importing goods or purchasing services from abroad which are subject to VAT (hereinafter referred to as importers), including … “.

Accordingly, under Article 2 and Article 3 of Circular No. 219/2013 / TT-BTC, when importing goods into Vietnam, enterprises must pay VAT on import, excluding those not subject to VAT guided in Article 4 of this Circular. Then, enterprises which contribute capital such as fixed assets to establish are not required to declare and pay VAT under Point a, Clause 7, Article 5 of Circular No. 219/2013 / TT-BTC.

By Thu Trang/ Hoang Anh

Source: http://customsnews.vn/

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CALCULATING VAT FOR IMPORTED MEDICAL EQUIPMENT

VCN – Regarding the request from Tri Viet Service Company Limited on guiding the regulations on VAT for medical equipment, the General Department of Customs guided in detail as below:

calculating vat for imported medical equipment

Operational activities at the Pho Bang Customs Branch under Ha Giang Customs Department. Photo: T.Trang

According to the General Department of Customs, some items without written certification of the Ministry of Finance, but with HS codes at the List of VAT issued together with Circular No. 83/2014/TT-BTC dated June 26, 2014 of the Ministry of Finance will be calculated VAT in different ways up to each case.

As described in Clause 1, Article 4 of Circular No. 83/2014/TT-BTC: products are not subject to tax or subject to VAT rate of 5 % or 10% in accordance with the VAT Law and Normative Legal Documents guiding the implementation of VAT Law will abide by the provisions in those documents. Particularly, cultivation, husbandry, aquatic and marine products; medical equipment or instruments must comply with clauses 3, 4, 5 of Article 4 of the Circular No. 83/2014/TT-BTC of the Ministry of Finance.

Besides, in clause 5, Article 4 of Circular No. 83/2014/TT-BTC stipulates: Medical equipment and instruments, including special-use medical machinery and instruments such as scanners, screeners and radiography machines for medical examination and treatment; devices and instruments used exclusively in surgery and wound treatment; ambulances; blood pressure and cardiovascular meters, blood transfusion tools; syringes and needles; contraceptive devices and other special-use medical equipment, must comply with the VAT List promulgated together with Circular No. 83/2014/TT-BTC of the Ministry of Finance.

It is acknowledged that, in the recent times, the Ministry of Finance and the General Department of Customs issued some Documents guiding the VAT for imported medical machinery to implement in accordance with the guidance in clause 8, Article 1 of Circular No. 26/2015/TT-BTC of the Ministry of Finance.

Some Documents are: Document No. 8159/BTC-TCT dated June 18, 2015 of the Ministry of Finance, Document No. 17278/BTC-TCT dated November 20, 2015 of the Ministry of Finance; Document No. 743/BTC-TCHQ dated January 17, 2017 of the Ministry of Finance; Document No. 2446/TCHQ-TXNK dated April 12 2017 of the General Department of Customs. In which, clause 1 of Document No. 743/BTC-TCHQ of the Ministry of Finance clarified this issue.

The General Department of Customs requested the Tri Viet Service Company Limited study provisions mentioned above for implementation. If any other obstacles, the Company should contact with Customs Authority where Customs declaration registered for further instructions.

By Thu Trang/ Huyen Trang

Source: http://customsnews.vn/