5% VAT Rate on Specialized Machinery and Equipment for Livestock and Poultry Farming
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Tax Sub-department No. 15 of Hanoi provides guidance to Gia Linh Manufacturing and Services Co., Ltd. (TIN 0101873635) on applying the 5% VAT rate to specialized machinery and equipment for livestock (pigs) and poultry (chickens, ducks, poultry egg incubation) farming. Pursuant to Clause 6, Article 19 of Decree No. 181/2025/ND-CP dated 01 July 2025 and Clause 3, Article 9 of VAT Law No. 48/2024/QH15, specialized machinery and equipment for agricultural production (including livestock farming) are subject to 5% VAT, effective 01 July 2025. The confirmed list includes: automatic feed and water dispensers, specialized housing structures, waste treatment equipment, ventilation and cooling systems, egg collection equipment, conveyors, and other specialized machinery. The company is permitted to apply 5% VAT when issuing sales invoices for these items, subject to self-assessment of actual production and business operations against applicable regulations.
Question
Gia Linh Manufacturing and Services Co., Ltd. (TIN 0101873635) requested guidance from Tax Sub-department No. 15 of Hanoi on applying the 5% VAT rate to a list of specialized machinery and equipment for livestock and poultry farming, which had been confirmed by the Department of Livestock Production and Animal Health - Ministry of Agriculture and Environment as specialized agricultural equipment.
Official guidance
Pursuant to Clause 6, Article 19 of Decree No. 181/2025/ND-CP dated 01 July 2025 of the Government detailing the implementation of certain provisions of the VAT Law, effective 01 July 2025, specialized machinery and equipment for agricultural production (including livestock farming) are subject to 5% VAT. The list covers equipment groups for livestock (pigs) and poultry farming, explicitly including "poultry egg incubators" as one of the specialized machinery types.
The Ministry of Agriculture and Environment, in coordination with the Ministry of Finance, provides guidance on other specialized machinery for agricultural production that also qualifies for the 5% VAT rate.
Pursuant to Clause 3, Article 9 of VAT Law No. 48/2024/QH15 dated 26 November 2024, effective 01 July 2025, the 10% VAT rate applies to goods and services not covered by Clauses 1 and 2 of that Article.
The company is advised to assess its actual production and business operations against applicable regulations to apply the correct rate.
Action points
- Cross-reference each machinery/equipment item against the list in Clause 6, Article 19 of Decree No. 181/2025/ND-CP to confirm eligibility for the 5% VAT rate
- Apply 5% VAT on sales invoices for items confirmed as specialized agricultural equipment
- For further queries, contact Business Support Team No. 2 - Tax Sub-department No. 15, Hanoi (tel: 0989.731.800)