Answer: If the ordinary VAT invoices issued by agricultural producers are used for taxable items, the input tax can be deducted.
The ordinary VAT invoice of duty-free agricultural products can also deduct 9% tax, but the buyer must be an ordinary taxpayer.
For duty-free agricultural products purchased by general VAT taxpayers from farmers' professional cooperatives, the VAT input tax can be deducted at the deduction rate of 9%.
2. Article 3 of the Notice of the Ministry of Finance of People's Republic of China (PRC), State Taxation Administration of The People's Republic of China, on the policy of exempting some fresh meat and eggs from value-added tax in circulation (Cai Shui [2012] No.75) stipulates:
The sales invoice allowed to deduct the input tax from the output tax mentioned in Item (3) of the Provisional Regulations on Value-added Tax in People's Republic of China (PRC) refers to the ordinary invoice issued by small-scale taxpayers themselves or entrusted by the tax authorities to pay the value-added tax on agricultural products according to the simple method of 3%. Ordinary invoices issued by wholesale and retail taxpayers after enjoying the tax exemption policy shall not be used as proof for calculating the input tax deduction.
What are the VAT duty-free products?
Article 15 of the Provisional Regulations on Value-added Tax stipulates that the following items shall be exempted from value-added tax:
(1) Self-produced agricultural products sold by agricultural producers; (2) Contraceptive drugs and devices; (3) old books; (4) Imported instruments and equipment directly used for scientific research, scientific experiments and teaching; (5) Imported materials and equipment provided free of charge by foreign governments and international organizations; (six) organizations for the disabled directly import articles for the disabled; (7) selling goods for personal use. In addition to the provisions of the preceding paragraph, the items exempted or reduced from VAT shall be stipulated by the State Council. No region or department may stipulate tax reduction or exemption items.
Annex 3 of Caishui No.20 1 636 also mentioned the items exempted from VAT, which are listed as follows: (1) Care and education services provided by nurseries and kindergartens; (2) Pension services provided by pension institutions; (3) Marriage introduction service; (4) Educational services provided by schools engaged in academic education; (5) Medical services provided by medical institutions; (6)
Note: The above business itself is an application for value-added tax, which is exempted because it involves issues related to the national economy and people's livelihood, such as agriculture, education and medical care, or to support the development of a certain industry or take care of some special vulnerable groups.
Can the invoice tax of duty-free products be deducted? The obtained tax-free invoices for agricultural products can be deducted from the value-added tax, which can be deducted by 9% according to the current tax rate. Similarly, because it is a duty-free product, it is not allowed to issue special invoices for selling self-produced agricultural products, and other duty-free products within the scope of value-added tax only issue ordinary invoices.