Specified items exempted from VAT


"Provisional Regulations of the People's Republic of China on Value-Added Tax”, the State Administration of Taxation Order No. 22

Article 15: The following items shall be exempt from VAT:-

  • (1) agricultural producers who sales home-grown products ;
  • (2) contraceptive medicines and devices ;
  • (3) old books ;
  • (4) directly used in scientific research, testing and teaching imported instruments and equipment ;
  • (5) foreign governments, international organizations, aid to import materials and equipment ;
  • (6) imported directly by the organizations of persons with disabilities for Handicapped items ;
  • (7) selling their used items.

Notwithstanding the foregoing, the VAT exemption and the reduction project is funded by the State Council.   Any regions or departments shall not regulate the tax exemption or reduction projects.

Article 16:  For tax-payers who engage in tax reduction items and shall be accounted for tax exemption or reduction projects sales; sales should not be accounted for separately and no exemption or reduction.

Article 17:  For tax-payers where sales does not reach the standard, the relevant tax authorities under the VAT threshold, the exemption from VAT; reach intrinsic point, in accordance with the provisions of this Ordinance calculate and pay VAT in full.

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