Anhydrous means there is no water in the VG mixture. at 99.5%, I would assume this was not meant for food comsumption and rather for things like skin care and hair care. 0.5% impurity is actually quite high, and you can get 99.7% off of amazon. The reason it's important is the .5% contains leftovers from the reaction. I would need to read up again on the different vegetable glycerine production methods, but a lot of times, VG is a by product that they package and sell, thus giving the impurities that can be harmful. I would stop using the 99.5% and look for things that are 99.7% or better.
Note: I am not a professional chemist (yet. haha I'm a chemistry major in university. I have a strange fascination with all of this)