Contract processing of export goods are exempted from value-added tax and consumption tax. The input tax paid on domestic raw materials used for exporting goods is not deductible and is transferred to the production cost, and the tax levied on domestic supporting raw materials is not refundable. That is, the export of tax-free but not refundable.
So, the material processing enterprises to purchase fixed assets and equipment and general enterprises are different, the value-added tax is not "exempted", input tax can not be deducted, to be into the cost. But, of course, depreciation should still be accrued.