I. Scope of tax-exempt commodities
The tax-exempt invoices are mainly applicable to commodities explicitly exempted from tax by the state, such as:
1. Agricultural products: such as grains, vegetables, fruits, etc., which are essential foodstuffs for daily life, and in order to safeguard the people's livelihood, the state usually implements tax-exempt policies for these commodities.
2. Agricultural production materials: such as agricultural tools, fertilizers, pesticides, etc., in order to support the development of agriculture, these production materials are often also included in the scope of tax exemption.
2. Scope of tax-exempt services
Tax-exempt invoices are also applicable to some specific service areas, such as:
1. Educational services: such as tuition fees and textbook fees for compulsory education, etc. In order to promote fairness in education, these fees are often included in the scope of tax exemption.
2. Medical services: including basic medical services, medicines, etc. In order to protect people's health rights, these services also enjoy tax exemption.
3. Tax-free Transactions under Specific Circumstances
Besides the above goods and services, there are also transactions under specific circumstances where tax-free invoices are applicable, such as:
1. Cross-border e-commerce retail imports: under certain conditions, goods imported by cross-border e-commerce retail can enjoy the tax exemption policy in order to promote the development of cross-border e-commerce.
2. Charitable donations: For qualified charitable donations, transactions between the donor and the donee can be invoiced tax-free to encourage the development of social welfare.
In summary:
The scope of tax-exempt invoices covers specific goods, services and transactions under specific circumstances. These tax exemptions are intended to promote the development of specific industries, safeguard the needs of people's livelihood, as well as encourage the development of social welfare undertakings. However, the issuance and use of tax-exempt invoices must strictly comply with national tax regulations and related policies to ensure the fairness and effectiveness of tax collection.
Legal basis:
Article 14 of the Value-added Tax Law of the People's Republic of China*** and the People's Republic of China
provides:
The following items are exempted from value-added tax:
(i) self-produced agricultural products sold by agricultural producers;
(ii) contraceptive medicines and paraphernalia;
(iii) antiquarian books;
( (iv) Imported instruments and equipment directly used for scientific research, scientific experiments and teaching;
(v) Imported materials and equipment freely assisted by foreign governments and international organizations;
(vi) Goods directly imported by organizations of disabled persons for the exclusive use of disabled persons;
(vii) Goods sold for their own use.
In addition to the provisions of the preceding paragraph, if the State Council provides otherwise, the provisions shall apply.