Legal analysis: 1. Waste materials recycling business units that sell their purchased waste materials shall be exempted from value-added tax. 2. The general taxpayer of production enterprise's value-added tax can buy the waste materials sold by the waste materials recycling business unit, and deduct the input tax 10% according to the amount indicated on the ordinary invoice issued by the waste materials recycling business unit and supervised by the tax authorities.

Legal basis: Civil Code of People's Republic of China (PRC).

Article 205 This part regulates the civil relations arising from the ownership and use right of things.

Article 206 The state adheres to and improves the socialist basic economic system with public ownership as the mainstay, multiple ownership economies developing together, distribution according to work as the mainstay and multiple modes of distribution coexisting, and adheres to and improves the socialist market economic system. The state consolidates and develops the public sector of the economy, and encourages, supports and guides the development of the non-public sector of the economy. The state practices a socialist market economy and guarantees the equal legal status and development rights of all market participants.

Article 207 State, collective and private property rights and the property rights of other obligees are equally protected by law, and no organization or individual may infringe upon them.

208th Article The establishment, alteration, transfer and extinction of the real right of immovable property shall be registered according to law. The establishment and transfer of the real right of movable property shall be delivered according to law.