In order to fight the COVID-19 epidemic, the company purchased medical supplies and donated them free of charge through the Red Cross. Can this business be exempted from VAT?

Can enjoy. Article 3 of the Announcement of State Taxation Administration of The People's Republic of China of the Ministry of Finance on Supporting the Prevention and Control of Pneumonia Infected in novel coronavirus (Announcement No.9 of State Taxation Administration of The People's Republic of China, Ministry of Finance, 2020) stipulates that units and individual industrial and commercial households are exempt from value-added tax if they donate their own products, goods entrusted for processing or purchase to public welfare social organizations, people's governments at or above the county level and their departments and other state organs, or directly hand them over to hospitals that undertake the task of epidemic prevention and control to treat pneumonia infected in novel coronavirus. The Red Cross is a "public welfare social group". If your company donates medical materials for the prevention and treatment of COVID-19 free of charge through public welfare social organizations such as the Red Cross, you can enjoy the above-mentioned VAT exemption according to regulations.