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.

For example, there are many disabled people in this enterprise, and the state will give it a tax exemption policy. In addition, if the threshold is not reached, tax-free invoices will be issued. Enterprises in the tax-free zone will also enjoy tax-free treatment and receive tax-free invoices.

This tax exemption is aimed at restaurants. Customers get such invoices after spending, which is the same as the normal invoices when making accounts, and there is no difference.

Zero VAT rate is different from VAT exemption:

Exemption from value-added tax refers to exempting a taxable object and a taxpayer from their own burden, while the goods or services purchased are still tax-included. Zero tax rate means not only that taxpayers do not pay taxes at this stage, but also that taxes transferred from previous stages must be refunded to achieve zero tax rate. But in practice, the meaning of zero tax rate is not strict in the use of different taxes.

For example, income tax is often manifested as zero tax rate corresponding to the tax exemption amount of taxable income. Of course, there is no problem of income tax conversion. Another example is the fixed assets investment adjustment tax. The investment project with zero tax rate only refers to the tax exemption of the investment project itself, and the goods and services it buys are actually tax-included, and the value-added tax paid is not refundable.

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. There are tax-free items in the customs declaration form, and the following items are exempt from value-added tax.

1. Self-produced agricultural products sold by agricultural producers refer to those sold by units and individuals directly engaged in plant planting, harvesting, animal breeding and fishing and listed in the Notes on the Scope of Taxation of Agricultural Products;

The purchased agricultural products sold by the above-mentioned units and individuals, as well as the agricultural products produced and processed by the above-mentioned units and individuals, still belong to the agricultural products listed in the notes and are not within the scope of tax exemption, and value-added tax is levied at the prescribed tax rate;

2. Contraceptive drugs and devices;

3. Old books. They refer to the old books and books acquired by the society;

4 imported instruments and equipment directly used for scientific research, scientific experiments and teaching;

5. Imported materials and equipment provided by foreign governments and international organizations free of charge;

6. Equipment imported for processing, assembly and compensation trade;

7. Special articles for the disabled are directly imported by disabled organizations. Specifically, prostheses, wheelchairs and orthoses for the disabled (including upper limb orthoses, lower limb orthoses and scoliosis orthoses) are exempt from value-added tax;

8. Individuals with disabilities who provide processing, repair and replacement services are exempt from VAT;

9. Sell your used items.

Legal basis: Article 29 of the Law on the Administration of Tax Collection. Except for tax authorities, tax personnel and units and personnel entrusted by tax authorities in accordance with laws and administrative regulations, no unit or individual may conduct tax collection activities.

Article 6 of the Announcement of the General Administration of Customs of the Ministry of Finance on Deepening the Reform of Value-added Tax (No.39 of 20 19) stipulates that taxpayers who purchase domestic passenger transport services without obtaining a special VAT invoice may temporarily deduct the tax amount indicated on the obtained electronic ordinary VAT invoice from the output tax amount.