Reverse takeover of military industrial enterprises, the process of exempting military products from value-added tax:
1. The weapons and equipment purchased by the military and the processing, repair and repair services of weapons and equipment are exempt from value-added tax The list of tax contracts is uniformly summarized and submitted by the Comprehensive Planning Bureau of the Ministry of Equipment Development (contracts signed directly between the military procurement (research and development) department and equipment manufacturing and research units).
2. The list of VAT-exempt contracts for weapons and equipment purchased by the Armed Police and processing, repair and repair services for weapons and equipment shall be compiled and submitted by the weapons and equipment procurement department of the Armed Police Headquarters. (The armed police will be transferred to the Central Military Commission, and subsequent processing should be reported to the Equipment Development Department of the Central Military Commission)
3. For weapons and equipment purchased by the public security, judicial and national security departments, the list of VAT-exempt contracts shall be provided by the Ministry of Public Security Equipment Finance Departments compile and submit reports uniformly.
4. For weapons and equipment sold by taxpayers to other taxpayers, the list of VAT-exempt contracts shall be compiled and submitted by the State Administration of Science, Technology and Industry for National Defense. (Specifically refers to contracts that are not directly signed with the military procurement and scientific research department, but are collaborative supporting contracts for the production and development of weapons and equipment between enterprises)
5. It boils down to a step-by-step review and reporting, which is carried out by the Ministry of Finance , the State Administration of Taxation will review and issue a document for implementation.