{"id":7900,"date":"2026-09-15T09:40:47","date_gmt":"2026-09-15T02:40:47","guid":{"rendered":"https:\/\/thue.man.net.vn\/?p=7900"},"modified":"2026-09-15T09:40:47","modified_gmt":"2026-09-15T02:40:47","slug":"muoi-an-co-chiu-thue-gtgt-khong","status":"publish","type":"post","link":"https:\/\/thue.man.net.vn\/en\/muoi-an-co-chiu-thue-gtgt-khong\/","title":{"rendered":"Is table salt subject to VAT?"},"content":{"rendered":"

Is table salt subject to VAT?<\/span><\/a>This is a crucial legal question of particular interest to many salt production, processing, import, and trading businesses during the tax declaration period. The 2024 Value Added Tax Law introduces new legal frameworks clearly defining the list of tax-exempt subjects, taxpayers, and the time when tax obligations arise. <\/span>VAT<\/span><\/a> The aim is to protect domestic industries and stabilize the consumer market.<\/span><\/p>\n

Incorrectly identifying the taxable entity not only causes financial losses but also leads to the risk of administrative penalties and tax arrears during audits. This article presents a comprehensive analysis from MAN \u2013 Master Accountant Network experts, helping businesses understand the legal basis in Articles 4, 5, and 8. <\/span>VAT Law 2024<\/span><\/a>, tax declaration procedures and tax risk optimization strategies.<\/span><\/p>\n

Summary of key points regarding whether table salt is subject to VAT.<\/b><\/h2>\n
\"T\u00f3m
Summary of key points regarding whether table salt is subject to VAT.<\/figcaption><\/figure>\n
    \n
  • Is table salt subject to VAT?<\/b> According to Clause 4, Article 5 of the Value Added Tax Law 2024, salt products produced from seawater, natural rock salt, refined salt, and iodized salt whose main component is sodium chloride (NaCl) are subject to taxation. <\/span>objects not subject to VAT<\/b>.<\/span><\/li>\n
  • Application stage:<\/b> The VAT exemption regulations apply uniformly to all stages: production, import, and commercial trading, for salt products that meet the prescribed standards.<\/span><\/li>\n
  • Taxpayers under Article 4:<\/b> This applies to organizations, households, and individuals producing and trading taxable goods, importers of taxable goods, and entities purchasing services from foreign countries. Household businesses engaged solely in salt trading do not generate output VAT for their non-taxable table salt products.<\/span><\/li>\n
  • The time of tax determination according to Article 8:<\/b> The time of transfer of ownership or right to use goods to the buyer, or the time of invoice issuance (for goods), or the time of completion of service provision\/invoice issuance (for services), regardless of whether payment has been received or not.<\/span><\/li>\n<\/ul>\n

    Is table salt subject to VAT? Legal basis according to the VAT Law 2024.<\/b><\/h2>\n
    \"Mu\u1ed1i
    Is table salt subject to VAT? Legal basis according to the VAT Law 2024.<\/figcaption><\/figure>\n

    The supreme legal basis governing value-added tax obligations in Vietnam is the Value-Added Tax Law 2024. To accurately answer the question of whether table salt is subject to VAT, businesses need to directly analyze the regulations in Article 5 of this law.<\/span><\/p>\n

    Detailed analysis of Clause 4, Article 5 of the Value Added Tax Law 2024<\/b><\/h3>\n

    According to Clause 4, Article 5 of the Value Added Tax Law 2024, the State clearly stipulates the list of items not subject to VAT, including: Salt products produced from seawater, natural rock salt, refined salt, and iodized salt whose main component is sodium chloride (NaCl).<\/span><\/p>\n

    This regulation applies to the entire salt supply chain, from mining and domestic production to import and commercial distribution in the market. Businesses selling these salt products are not required to calculate and pay output VAT.<\/span><\/p>\n

    From MAN's perspective, the purpose of the VAT exemption policy for table salt is to protect an essential commodity, support the livelihoods of salt farmers, and reduce the burden of consumer costs for the people.<\/span><\/p>\n

    Distinguish between types of table salt that are exempt from VAT.<\/b><\/h3>\n

    Not all products labeled as salt are automatically exempt from VAT. Tax authorities, during inspections, will base their assessment on the technical characteristics and composition of the product.<\/span><\/p>\n

    The following types of table salt are exempt from VAT:<\/span><\/p>\n

      \n
    • Crude salt is produced directly from seawater through natural evaporation.<\/span><\/li>\n
    • Rock salt is extracted directly from natural salt deposits deep underground.<\/span><\/li>\n
    • Processed salt has undergone impurities removal, either mechanically cleaned or refined.<\/span><\/li>\n
    • Iodized salt is refined or coarse salt that has been fortified with iodine according to medical standards for disease prevention.<\/span><\/li>\n<\/ul>\n

      The key point is that all of these salts must maintain their main constituent component as sodium chloride (NaCl).<\/span><\/p>\n

      In the case where salt products are subject to VAT.<\/b><\/h3>\n

      In practice, tax risk management in Vietnam shows that many businesses are subject to tax arrears due to confusion between pure table salt and processed salt products.<\/span><\/p>\n

      If table salt is mixed with other spices and additives to create new products such as shrimp salt, chili salt, pepper salt, dried spiced salt, or salt used in beauty products, those products are no longer exempt from VAT under Clause 4, Article 5.<\/span><\/p>\n

      These mixed processed products will be subject to the standard VAT rate (usually 8% or 10% depending on the tax reduction policy at the time of business). Experts at MAN with 30 years of experience note that incorrect product names and ingredients on invoices are the main cause of this error.<\/span><\/p>\n

      Regulations on taxpayers and tax declaration obligations for households and individuals producing salt.<\/b><\/h2>\n

      Besides the goods or services sold, the legal status of the business entity also determines its obligation to declare and pay VAT.<\/span><\/p>\n

      Detailed analysis of Article 4 of the 2024 Value Added Tax Law regarding taxpayers.<\/b><\/h3>\n

      Article 4 of the Value Added Tax Law 2024 specifically stipulates the groups of taxpayers liable for VAT, including:<\/span><\/p>\n

        \n
      1. Clause 1 of Article 4:<\/b> Organizations, households, and individuals producing and trading goods and services subject to value-added tax (hereinafter referred to as business establishments).<\/span><\/li>\n
      2. Clause 2 of Article 4:<\/b> Organizations and individuals importing goods subject to value-added tax (hereinafter referred to as importers).<\/span><\/li>\n
      3. Clause 3 of Article 4:<\/b> Organizations and individuals producing and trading in Vietnam who purchase services (including services associated with goods) from foreign organizations without a permanent establishment in Vietnam, or from individuals abroad who are non-residents of Vietnam; organizations producing and trading in Vietnam who purchase goods and services to conduct oil and gas exploration, development and exploitation activities from foreign organizations without a permanent establishment in Vietnam, or from individuals abroad who are non-residents of Vietnam.<\/span><\/li>\n<\/ol>\n

        Thus, any entity participating in economic activity is subject to the Value Added Tax Law. However, the obligation to pay tax to the state budget depends directly on whether the goods or services are subject to tax.<\/span><\/p>\n

        Do businesses that sell table salt have to pay VAT?<\/b><\/h3>\n

        Based on the combination of Articles 4 and 5 of the Value Added Tax Law 2024, household businesses and individuals trading in pure table salt (sea salt, rock salt, refined salt, iodized salt) will not be required to pay VAT on the revenue from the sale of this item.<\/span><\/p>\n

        However, if a household business simultaneously sells other taxable items (such as fish sauce, bottled spices, and other consumer goods), the household business is still liable for tax under Clause 1, Article 4, on the revenue generated from those taxable items.<\/span><\/p>\n

        Revenue from salt products, which is not subject to tax, must still be fully recorded in accounting books and reported periodically as required by law.<\/span><\/p>\n

        Tax-free revenue threshold and invoicing responsibility<\/b><\/h3>\n

        Tax regulations stipulate that individuals and household businesses with annual revenue below the prescribed tax threshold will not incur any obligation to pay VAT and personal income tax.<\/span><\/p>\n

        For businesses selling table salt, even though table salt is exempt from VAT, they are still required to issue electronic invoices when selling goods. On the electronic invoice, the VAT rate field must correctly select "KCT" (Not subject to VAT).<\/span><\/p>\n

        The solution from MAN \u2013 Master Accountant Network helps businesses set up an accurate electronic invoicing system, preventing the selection of incorrect tax codes that could lead to the risk of data extraction by tax authorities.<\/span><\/p>\n

        The time of determining VAT for salt products and goods for which payment has not yet been collected is according to current regulations.<\/b><\/h2>\n

        Determining the correct timing for recording tax obligations is a core principle in tax accounting. This avoids the risk of late payment penalties or violations of invoicing regulations.<\/span><\/p>\n

        The regulations regarding the timing of VAT determination are detailed in Article 8 of the 2024 VAT Law.<\/b><\/h3>\n

        Based on Article 8 of the Value Added Tax Law 2024, the time of determining VAT is specifically defined as follows:<\/span><\/p>\n

          \n
        1. According to Clause 1 of Article 8:<\/b><\/li>\n<\/ol>\n