The Reply of the State Administration of Taxation on the Issue of Levying Value-added Tax on Pet Feeds, Guo Shui Han [2002] No. 812, stipulates that pet feed products are not VAT-exempted feeds, and should be levied VAT at the rate of 13% on feed products. The tax rate is now 9%.
VAT is a kind of turnover tax levied on the value-added amount of goods (including taxable services) generated in the process of turnover as the basis for tax calculation.