Belarus changes procedure for VAT deduction on import and realization of medical products

A VAT rate of 10% applies to import and realization of medicines and medical devices

From 1 January 2021 a VAT rate of 10% applies to import and realization of medicines and medical devices in Belarus (previously they were exempt from VAT).

A preparatory period until 1 February 2021 has been established for the retail trade to recalculate prices in order to include VAT in the required amount to stocks of medicines and medical devices in hand available as of 1 January 2021. The Ministry for Taxes and Charges clarifies that the new rules do not apply to realization of stocks in hand from 1 January 2021 until bringing prices in line with the new rules but no later than 1 February 2021.

When goods arrive from suppliers after 1 January 2021, retail prices are formed in accordance with the new rules as soon as goods arrive.

Furthermore, there is no preparatory period for the wholesale trade.

The grounds for applying the VAT rate of 10% for medicines are:
• registration in the Belarusian state register of medicines, or in the Unified register of registered medicines of the Eurasian Economic Union (EAEU), or
• conclusion (permission) of the Ministry of Healthcare to import unregistered medicines to Belarus;
and for medical devices:
• registration in the Belarusian state register of medical devices and medical equipment, or in the Unified register of medical devices registered within the EAEU, or
• permission from the Ministry of Healthcare for import or (and) medical use of unregistered medical devices.

Additionally, from 1 January 2021 the common VAT rate of 20% applies to import of the following categories of medical products to Belarus (previously VAT exemption applied to some types of medical products):
• raw materials and supplies for production of medicines and medical devices (including prosthetic and orthopedic products);
• components for production of medicines and medical devices (including prosthetic and orthopedic products);
• semi-products for medicines and medical devices (including prosthetic and orthopedic products).

Source: National legal internet portal of the Republic of Belarus (NLIP) 01.01.2021, 2/2792

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