Circular No. 833-TC/TCT regarding import tax exemption for ambulances serving healthcare and collection of taxes when changing usage purpose.

LETTER

OF THE MINISTRY OF FINANCE NUMBER 833 TC/TCT DATED APRIL 12, 1995 REGARDING IMPORT TAX ON AMBULANCE VEHICLES FOR HEALTHCARE PURPOSES AND MODIFIED AMBULANCE VEHICLES FOR OTHER USE. FOR OTHER PURPOSES.

RESPECTFULLY SUBMITTED TO: - GENERAL DEPARTMENT OF CUSTOMS

- MINISTRY OF HEALTH

- MINISTRY OF TRADE

- VIETNAM MACHINE AND SPARE PARTS CORPORATION

- POSTAL ADMINISTRATION

- DANANG AUTOMOBILE SPARE PARTS DESIGN COMPANY

- DANANG AUTOMOBILE MECHANICAL FACTORY

BASED ON THE DIRECTIVES OF THE PRIME MINISTER IN LETTER NO. 1083/KTTH DATED MARCH 4, 1995 REGARDING IMPORT TAX ON AMBULANCE VEHICLES; LETTER NO. 5589/KTTH DATED OCTOBER 8, 1994... PERMITTING THE VIETNAM MACHINE AND SPARE PARTS CORPORATION TO SELL EXISTING AMBULANCE VEHICLES AND LETTER NO. 6785/KTTH DATED DECEMBER 1, 1994... PERMITTING THE POSTAL ADMINISTRATION TO MODIFY A LOT OF YAZ-3962 AMBULANCE VEHICLES PURCHASED FROM DANANG AUTOMOBILE SPARE PARTS DESIGN COMPANY INTO COMBINED MAIL AND PASSENGER CARRIAGE VEHICLES.

BASED ON THE REQUEST OF THE MINISTRY OF HEALTH IN LETTER NO. 1136/TTB DATED FEBRUARY 20, 1995 REGARDING IMPORT TAX ON NEW AMBULANCE VEHICLES FOR MEDICAL USE BY SOME UNITS UNDER THE HEALTH SECTOR; AND LETTER NO. 9117/TTB DATED DECEMBER 10, 1994... REQUESTING EXEMPTION FROM TAX ON 20 NISSAN ASSEMBLED VEHICLES AT DANANG AUTOMOBILE MECHANICAL FACTORY;

BASED ON THE REQUEST OF DANANG AUTOMOBILE MECHANICAL FACTORY IN LETTERS NO. 28/CV-KH DATED JANUARY 20, 1995 AND NO. 98/CV-NM DATED MARCH 20, 1995... REQUESTING EXEMPTION FROM TAX ON AMBULANCE VEHICLES ASSEMBLED FROM CKD1 PARTS FOR A 12-SEATER VEHICLE TO SERVE THE HEALTH SECTOR.

THE MINISTRY OF FINANCE ANNOUNCES:

1. IMPORTED NEW AMBULANCE VEHICLES THAT THE MINISTRY OF HEALTH HAS ASSIGNED SOME UNITS TO IMPORT AND USE FOR MEDICAL PURPOSES, IF THEY MEET THE STANDARDS LISTED IN THE MANUFACTURER'S CATALOGUE AS DIRECTED BY LETTER NO. 41 TC/TCT DATED JANUARY 5, 1994 AND LETTER NO. 189 TC/TCT DATED MARCH 1, 1995 OF THE MINISTRY OF FINANCE, SHALL BE SUBJECT TO AN IMPORT TAX RATE OF GROUP: 870590 WITH A RATE OF 0% (ZERO PERCENT).

2. FOR THE CKD1 PARTS OF NISSAN VEHICLES WITH 12 SEATS THAT DANANG AUTOMOBILE MECHANICAL FACTORY HAS IMPORTED TO ASSEMBLE INTO AMBULANCE VEHICLES ACCORDING TO ORDERS FROM THE MINISTRY OF HEALTH, CUSTOMS WILL CALCULATE TAX AND ISSUE A NOTICE OF TAX DUE. THE TIME LIMIT FOR PAYMENT IS 90 DAYS FROM THE DATE OF RECEIPT OF THE OFFICIAL NOTICE OF TAX DUE FROM CUSTOMS, SPECIFICALLY:

- IF WITHIN THE 90-DAY PERIOD DANANG AUTOMOBILE MECHANICAL FACTORY HAS ASSEMBLED THE AMBULANCE VEHICLES AND ACTUALLY DELIVERED THEM TO THE MINISTRY OF HEALTH, CUSTOMS WILL SETTLE THE TAX DEBT AT A RATE OF 0% BASED ON THE FRAME AND ENGINE NUMBERS OF THE IMPORTED VEHICLES.

- IF MORE THAN 90 DAYS FROM THE DATE OF RECEIPT OF THE OFFICIAL NOTICE OF TAX DUE DANANG AUTOMOBILE MECHANICAL FACTORY HAS NOT ASSEMBLED THE AMBULANCE VEHICLES OR DELIVERED THEM TO THE MINISTRY OF HEALTH, THE UNIT MUST PAY THE FULL IMPORT TAX ACCORDING TO REGULATIONS FROM DAY 91 ONWARDS. IF THE TAX IS NOT PAID, A PENALTY FOR LATE PAYMENT WILL BE IMPOSED AS PER REGULATION: WHEN DANANG AUTOMOBILE MECHANICAL FACTORY ACTUALLY DELIVERS AMBULANCE VEHICLES ASSEMBLED FROM CKD PARTS OF 12-SEATER NISSAN VEHICLES TO THE HEALTH SECTOR FOR USE, THE MINISTRY OF FINANCE WILL REFUND THE IMPORT TAX ALREADY PAID.

3. FOR IMPORTED AMBULANCE VEHICLES THAT ARE NO LONGER USED FOR MEDICAL PURPOSES AND ARE TRANSFORMED FOR OTHER USES, CUSTOMS SHALL COLLECT THE IMPORT TAX ON THESE VEHICLES AT THE UNIT THAT SELLS THE AMBULANCE VEHICLES TO BE CONVERTED FOR OTHER USES ACCORDING TO THE RATE OF TAX AND THE VALUE OF THE IMPORTED VEHICLE AS STATED IN THE PURCHASE ORDER SUBMITTED BY THE BUYER AT THE TIME OF IMPORT.

The Ministry of Finance informs the General Department of Customs and relevant units for their knowledge and implementation.