Announcement No.8 of the Ministry of Finance and State Taxation Administration of The People's Republic of China in 2020 is [Exemption from VAT], which is a declaration of VAT and is tax-free on the declaration form. Do not issue tax-free invoices.
VAT exemption refers to a taxable behavior. Because of the support of national policies, value-added tax is not levied on the sales link, but the input is not allowed to be deducted or refunded. Tax exemption means that the state exempts taxpayers from paying taxes according to the needs of policies.
The tax-free stamp on the invoice should be the tax-free condition for the company to review, and there is no need to pay taxes.