Exemption from VAT is applicable to specific projects, and State Taxation Administration of The People's Republic of China, People's Republic of China (PRC) stipulates that these projects will not be subject to VAT for the time being. Applicable items include personal transfer of copyright; Taxable services provided by individuals with disabilities; Airlines spread pesticide services; Technology transfer, technology development and related technical consultation and services provided by pilot taxpayers; Taxable services provided by energy-saving service companies in contract energy management projects; Telecommunications services provided by domestic units and individuals to overseas units. Tax incentives allow the sales of these tax-free items to be deducted when calculating the taxable amount, and the tax-free sales do not include tax.

The tax scope and preferential policies of value-added tax;

1, the basic concept of value-added tax: value-added tax is an indirect tax levied on the value-added in the process of commodity production and circulation;

2. Tax scope: VAT is applicable to the sale of goods, the provision of processing, repair and replacement services, sales services, intangible assets and real estate.

3. Tax-free items: According to economic development and industrial policies, the state stipulates that some goods and services are not subject to value-added tax;

4. Preferential treatment for small-scale taxpayers: Under certain conditions, small-scale taxpayers can enjoy preferential treatment of tax exemption or simplified tax rate;

5. Preferential treatment of agricultural products: sales of certain commodities such as agricultural products can enjoy tax exemption or tax reduction and exemption policies;

6. Export tax rebate: VAT tax rebate policy is implemented for export commodities to encourage export and international trade.

To sum up, the VAT exemption policy is aimed at a series of specific projects, such as individual copyright transfer, services provided by the disabled, aviation pesticide services, technology transfer and consultation, contract energy management, overseas telecommunications services, etc., aiming at reducing the financial burden of specific fields or people through tax incentives and promoting the development of related industries and social economy. Among them, tax-free sales are deducted when calculating the taxable amount, and sales are tax-free.

Legal basis:

Provisional Regulations of People's Republic of China (PRC) Municipality on Value-added Tax

Article 15

The following items are exempt 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) articles for the disabled directly imported by organizations for the disabled;

(7) selling articles for personal use.

In addition to the provisions of the preceding paragraph, the items of tax exemption and reduction of value-added tax shall be stipulated by the State Council. No region or department may stipulate tax exemption or reduction items.