Vietnam clarifies that household businesses buying livestock from external suppliers, slaughtering them, and selling fresh meat must pay VAT at 1% of revenue. The guidance also confirms that self-produced livestock products are exempt from VAT if only basic processing is performed.
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Key Takeaways
In Vietnam, household businesses that purchase livestock from external suppliers, slaughter them, and sell fresh meat must pay VAT at 1% of revenue, as per current regulations.
Yes, under Vietnam's Law on Value-Added Tax No. 48/2024/QH15 and Decree No. 181/2025, livestock products produced and sold directly by farmers or household businesses are exempt from VAT if only basic processing is performed.
Basic processing methods exempt from VAT include cleaning, refrigerated storage, drying, cutting or portioning, deboning, chopping or skin removal, salting, and other standard preservation methods, as detailed in Decree No. 181/2025.
Personal income tax obligations for household businesses are determined separately under Circular No. 40/2021 issued by the Ministry of Finance.
The key factor is whether the livestock is self-produced or purchased for resale; this distinction determines whether VAT applies, as advised by the Hanoi Tax Office.
Primary source
Read the full article at AviNewsThis summary was published on VATfaqs.com on 22 July 2026. It relates to VAT developments in Vietnam. The original source is AviNews.
