Are agricultural and sideline products tax-free?

Judging whether it belongs to duty-free agricultural and sideline products mainly depends on whether it is self-produced.

Article 16 of the Provisional Regulations on Value-added Tax in People's Republic of China (PRC) stipulates:

Article 16 The following items shall be exempted from VAT:

(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;

(6) Processing, assembling and compensating imported equipment for trade;

(seven) articles for the disabled directly imported by organizations for the disabled;

(8) selling articles for personal use.

It can be seen from the regulations that self-produced agricultural products sold by agricultural producers are exempt from VAT, so self-production is the key to tax exemption.

The same are eggs and live chickens. If a chicken factory sells its own chickens and eggs, it belongs to duty-free agricultural and sideline products; If the supermarket buys eggs and live chickens before selling them, it sells taxable agricultural and sideline products to the supermarket.