On the Ministry of Finance Information Portal, reader P.V. T reflected: "Our business household specializes in buying pigs and chickens from farmers to slaughter and resell fresh meat to eateries and market sources.
When we purchase pigs and chickens from farmers, they are goods not subject to tax. When slaughtering and redistributing fresh meat, is it subject to VAT or only 0.5% of personal income?
In case business households purchase pigs and chickens for slaughter and sell fresh meat, the product is only a preliminary processed product, the value-added tax is 1% on revenue, right?
If you buy pigs and chickens to raise yourself and then slaughter them, will you be exempt from value-added tax and personal income tax?
Regarding this content, Base Tax No. 12 of Hanoi City said that, based on Article 5 of the Value Added Tax Law No. 48/2024/QH15, subjects not subject to VAT include products of crops, planted forests, livestock, aquaculture, aquaculture, and fishing that have not been processed into other products or have only undergone ordinary preliminary processing by organizations and individuals self-producing, catching and selling, and in the import stage.
At the same time, based on Article 4 of Decree No. 181/2025/ND-CP dated July 1, 2025 of the Government detailing the implementation of a number of articles of the Law on Value Added Tax, non-taxable subjects are implemented according to Article 5 of the Law on Value Added Tax.
In which, products that are only under preliminary processing are new products that are cleaned, dried, peeled, ground, ground into pieces, ground into pieces, ground to remove shells, ground to remove shells, seeds, stalks, cut, ground, polished seeds, seed paste, divided into parts, boneless, minced, peeled, ground, rolled thin, salted, air-sealed, refrigerated (refrigeration, freezing), stored with sulfur gas, stored by chemical methods to avoid spoilage, soaked in sulfur solution or soaked in other preservation solutions and other common forms of preservation.
In addition, based on Decree No. 359/2025/ND-CP dated December 31, 2025 of the Government amending and supplementing a number of articles of Decree No. 181/2025/ND-CP dated July 1, 2025.
In Clause 1b supplemented after Clause 1, Article 4, it is stipulated that enterprises, cooperatives, and cooperative unions that purchase crop products, planted forests, livestock, aquaculture, and fishing products that have not been processed into other products or only through ordinary preliminary processing and sold to other enterprises, cooperatives, and cooperative unions are not required to declare and calculate value-added tax but are entitled to input value-added tax deduction.
The Decree also stipulates that households, individuals producing, trading, enterprises, cooperatives, cooperative unions and other economic organizations pay value-added tax according to the direct calculation method when selling products of crops, planted forests, livestock, aquaculture, caught fish that have not been processed into other products or have only undergone ordinary preliminary processing in the commercial business stage, value-added tax must be calculated according to revenue equal to 1% multiplied by revenue.
In addition, Base Tax 12 of Hanoi City refers to Appendix I issued together with Circular No. 40/2021/TT-BTC dated June 1, 2021 of the Ministry of Finance regulating the list of occupations for calculating VAT and personal income tax as a percentage of revenue for business households and individual businesses.
Based on the above regulations, Base Tax 12 of Hanoi City requests readers to base on the actual operating situation and compare relevant legal documents to implement tax policies in accordance with the law.
