News

Goods for Covid-19 pandemic prevention exempted from import duty and VAT

Summary

 Goods imported by Vietnamese organizations and individuals to serve Covid-19 prevention and control are exempt from import duty and value-added tax as imported goods in the case of humanitarian aid and non-refundable aid, according to the Government Resolution 106.

Updated on : 21-11-2021

To support ministries and government agencies across the country in containing the Covid-19 pandemic, many businesses have actively imported medical equipment and medicine for effective control.

Illustrative photo.

The Ministry of Finance has reported to the Prime Minister to issue a decree instructing the handling for imported goods for disease prevention and control.

On September 11, Deputy Prime Minister Le Minh Khai signed and promulgated Resolution 106/NQ-CP on tax policy on imported goods for disease prevention and control.

Recently, the GDVC has received an application from Thu Do Joint Stock Tourism-Trading and Investment Company, and AIC Group for exemption from import tax and VAT for consignments donated for Covid-19 prevention and control.

Thu Do Joint Stock Tourism-Trading and Investment Company imported 3,697,200 Covid-19 rapid antigen test kits. AIC Group imported a shipment of 2,000,000 Avigan tablets.

Therefore, the GDVC requests importers to contact Customs to be instructed on the quick customs clearance of goods.

The GDVC has also asked local customs departments to create favorable conditions for businesses in customs process and clear goods within a day for shipments of medical supplies, equipment, medicine, vaccines and biological products to serve disease prevention and control.

To instruct businesses to understand regulations, the GDVC cites Resolution 106 as saying that those imported before the effective date of the resolution (September 11, 2021) and approved by authorities, will be exempted from import duty and VAT.

If importers have paid these taxes, the tax amounts will be handled as overpaid tax.

The preferential tax policies will expire when the State agencies announce the end of the Covid-19 pandemic.