Tax-free agricultural products are exempt from value-added tax, and 13% of the input tax can be deducted. The freight included in it can be deducted. The deductible input tax = purchase amount * 13%. The input tax deducted from freight = (freight + construction fund

)*7%.

Tax-free agricultural products mainly include the following six types: 1. Sales of self-produced primary agricultural products. Article 15 of the "Interim Regulations of the People's Republic of China on Value-Added Tax" stipulates that the following items are exempt from value-added tax: (1) Sales by agricultural producers

Self-produced agricultural products.

The specific scope of primary agricultural products is determined by the "Notes on the Scope of Taxation of Agricultural Products".

2. Farmers’ professional cooperatives sell agricultural products produced by their members. Starting from July 1, 2008, in accordance with the provisions of the “Notice on Taxation Policies for Farmers’ Professional Cooperatives” (Finance and Taxation [2008] No. 81), farmers’ professional cooperatives sell their own agricultural products.

Agricultural products produced by members are treated as agricultural producers selling self-produced agricultural products and are exempt from value-added tax.

3. Seed production enterprises produce and sell seeds under a specific production and operation model. Starting from December 1, 2010, in accordance with the provisions of the "Announcement on Issues Concerning Value-Added Tax in the Seed Production Industry" (State Administration of Taxation Announcement No. 17, 2010),

Seed production enterprises that produce and sell seeds under the following production and operation models are agricultural producers selling self-produced agricultural products and should be exempted from value-added tax in accordance with the relevant provisions of the "Interim Regulations of the People's Republic of China on Value-Added Tax".

1. Seed production enterprises use their own land or leased land, hire farmers or workers to breed seeds, and then sell the seeds after deep processing such as drying, threshing, and wind screening.

2. Seed production enterprises provide parent seeds and entrust farmers to breed them and collect them from farmers. The seeds are then sold after deep processing such as drying, threshing, and air sieving.

4. Starting from January 1, 2012, the vegetables sold by taxpayers engaged in the wholesale and retail of vegetables will be exempted from the VAT in vegetable circulation in accordance with the "Notice on Issues Concerning the Exemption of Value-Added Tax in the Vegetable Circulation Link" (Caishui [2011] No. 137).

For the link value-added tax, vegetables sold by taxpayers engaged in vegetable wholesale and retail are exempt from value-added tax.

Vegetables refer to herbs and woody plants that can be used as non-staple food, including various vegetables, fungi and a few woody plants that can be used as non-staple food.

Vegetables that have been processed through processes such as selection, cleaning, cutting, drying, packaging, dehydration, refrigeration, and freezing fall within the scope of the above-mentioned vegetables.

5. Starting from October 1, 2012, some fresh meat and egg products will be exempted from value-added tax in the circulation of certain fresh meat and egg products in accordance with the "Notice of the Ministry of Finance and the State Administration of Taxation on the policy of exempting some fresh meat and egg products from value-added tax in the circulation link" (Caishui [2012] No. 75)

It stipulates that some fresh meat and egg products sold by taxpayers engaged in the wholesale and retail of agricultural products are exempt from value-added tax.

1. Fresh meat products that are exempt from value-added tax refer to pigs, cattle, sheep, chickens, ducks, geese and their whole or cut fresh meat, refrigerated or frozen meat, offal, head, tail, bones, hooves,

Wings, claws and other tissues.

2. Fresh egg products that are exempt from value-added tax refer to eggs, duck eggs, and goose eggs, including fresh eggs, refrigerated eggs, and their broken and separated egg liquids, egg yolks, and egg shells.

6. Adopting the "company + farmer" business model to sell livestock and poultry According to the "Announcement on Value-Added Tax Issues Concerning Taxpayers Adopting the "Company + Farmer" Business Model to Sell Livestock and Poultry", starting from April 1, 2013, taxpayers

Adopting a "company + farmer" business model to engage in livestock and poultry breeding, that is, the company signs an entrusted breeding contract with farmers to provide farmers with livestock and poultry seedlings, feed, veterinary drugs and vaccines (ownership belongs to the company), and farmers raise livestock and poultry seedlings to finished products and then deliver them

The company recycles and sells the recycled finished livestock and poultry.

Agricultural producers selling self-produced agricultural products shall be exempt from value-added tax in accordance with the relevant provisions of the "Interim Regulations of the People's Republic of China on Value-Added Tax".

Extended information: 1. The circulation of agricultural products refers to an economic activity in which the commodity part of agricultural products is transferred from the agricultural production field to the consumption field through buying and selling.

2. The circulation of agricultural products includes a series of links such as the purchase, transportation, storage, and sales of agricultural products.

Agricultural products in a broad sense include products from agriculture (plantation), forestry, animal husbandry, fishery and sideline industries; agricultural products in a narrow sense only include products from the planting industry, such as: grain, cotton, oil, hemp, silk, tea, sugar, vegetables

, cigarettes, fruits, medicines, miscellaneous and other products.