Household Businesses Distributing Animal Feed: VAT-Exempt or 1% Rate?
RegHub explainer by New MarketerLast updated:
Based on:Khoản 3 Điều 5 Luật Thuế GTGT số 48/2024/QH15 ngày 26/11/2024 - Ministry of Finance
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The Can Tho City Tax Department confirmed that animal feed is VAT-exempt under Article 5, Clause 3 of the VAT Law No. 48/2024/QH15. Household businesses using the declaration method that distribute animal feed are not subject to VAT. However, household businesses must still file VAT declarations as required. Additionally, those with annual revenue exceeding VND 300 million must file and pay personal income tax in accordance with the law.
Household Businesses Distributing Animal Feed and VAT Treatment
Legal Basis:
- Article 5, Clause 3 of VAT Law No. 48/2024/QH15 dated 26/11/2024
Guidance:
Animal feed as defined under animal husbandry law and aquaculture feed as defined under aquaculture law are VAT-exempt goods.
Therefore, household businesses using the declaration (ke khai) method that distribute animal feed remain exempt from VAT. The 1% rate applicable to goods distribution does NOT apply to animal feed.
Household businesses must still file VAT declarations as required. Those with annual revenue exceeding VND 300 million must also file and pay personal income tax (PIT).
Responding authority: Can Tho City Tax Department.