Accounting entries for issuing tax-exempt invoices:
Borrow: accounts receivable, bank deposits, etc.
Credit: revenue from main business,
Receiving tax-exempt invoices:
Borrow: inventory, raw materials, etc.
Debit: taxes payable-VAT payable -input tax,
Loan: accounts payable, bank deposits .
If it is a tax-exempt agricultural product, you can calculate the input tax credit.
According to Article 8(2)(3) of the Provisional Regulations on Value-Added Tax of the People's Republic of China*** and the State of China, the purchase of agricultural products, except for obtaining a special VAT invoice or a special payment certificate for VAT on customs imports, is subject to the purchase price of the agricultural products as stated on the purchase invoice or sales invoice of the agricultural products and a 13% (since April 1, 2019, taxpayers' sales of agricultural products have been subject to a 9% tax rate) input tax calculated at the deduction rate.