WHICH MEDICAL DEVICES ARE SUBJECT TO 0% VAT?

Importing medical devices is a crucial sector in international trade, especially for businesses dealing in medical products. One of the key factors to consider when importing is VAT (Value Added Tax), as it directly impacts costs and profits. So, which medical devices are eligible for a 0% VAT rate upon import? Let’s explore this topic in detail.

1. VAT on Imported Medical Devices

Typically, imported medical devices are subject to a 5% VAT rate. However, under Article 4, Section 24 of Circular 219/2013/TT-BTC, certain medical devices are eligible for 0% VAT, allowing businesses to optimize import costs.

Specifically, this regulation states that artificial body parts and assistive devices for people with disabilities are exempt from VAT.

2. List of Medical Devices Exempt from 0% VAT

Below are some imported medical devices that qualify for a 0% VAT rate under current regulations:

Prosthetic limbs – Artificial body parts that help people with disabilities move more easily.
Wheelchairs – Mobility aids for elderly individuals, disabled persons, or patients with mobility impairments.
Crutches and walking frames – Assistive devices for injured or disabled individuals in their mobility.
Long-term implantable medical devices – Including artificial joints, heart valves, cochlear implants, and more.

Important Notes:

Although some medical devices qualify for 0% VAT, businesses must verify the HS code of their products to ensure they fall under the tax-exempt category. Additionally, they must provide sufficient documentation proving that the imported goods belong to the eligible group for tax exemption.

3. Key Considerations When Importing Medical Devices

Businesses should take note of the following:

Accurately determine the HS code of the product to apply the correct VAT rate.
Review Vietnam’s import policies for each type of medical device, as some may require a license from the Ministry of Health.
Ensure all import documents are valid, including commercial invoices, packing lists, certificates of origin (C/O), and quality certificates (C/Q).
Take advantage of tax incentives to optimize import costs.

4. Optimizing Import Costs Through Tax Policies

Understanding VAT policies on imported medical devices enables businesses to develop effective import strategies, reduce costs, and maximize profits. If your company is planning to import or export, staying updated on the latest tax regulations ensures compliance and helps you make the most of available tax incentives.

If you’re looking for the best import-export solutions, feel free to contact us for detailed consultation. If you need legal support or assistance with customs procedures in import-export activities, please contact Smart Link Logistics for fast and efficient consultation. With over 14 years of experience in the transportation field, we are proud to accompany you throughout your journey.

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If you require assistance with international import and export of goods, please contact our team at Smartlink Logistics. We are available to provide you with professional guidance on our services and the necessary customs procedures.

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