Vegetable retail and wholesale do not need to pay VAT. According to the Notice of the Ministry of Finance and State Taxation Administration of The People's Republic of China on Issues Concerning Exemption from VAT in Vegetable Circulation, vegetables sold by taxpayers engaged in vegetable wholesale and retail are exempt from VAT. Vegetables refer to herbs and woody plants that can be used as non-staple food, including all kinds of vegetables, fungi and a few woody plants that can be used as non-staple food. The main varieties of vegetables refer to the Catalogue of Main Vegetables. Vegetables processed by processes such as selection, cleaning, cutting, drying, packaging, dehydration, refrigeration and freezing belong to the scope of vegetables mentioned in this notice. Canned vegetables do not fall within the scope of vegetables mentioned in this notice. Canned vegetables refer to foods made from vegetables by processing, canning, sealing, sterilization or aseptic packaging. However, taxpayers who sell vegetables and other VAT taxable goods at the same time should be accounted for separately. If they are not accounted for separately, they will not enjoy the VAT exemption policy for vegetables.

Legal basis:

State Taxation Administration of The People's Republic of China, Ministry of Finance, Notice on Exemption from Value-added Tax in Vegetable Circulation. Vegetables sold by taxpayers engaged in vegetable wholesale and retail are exempt from value-added tax. Two, taxpayers selling vegetables and other VAT taxable goods, should be accounted for separately the sales of vegetables and other VAT taxable goods; Those who have not been accounted for separately shall not enjoy the tax exemption policy for vegetable value-added tax.

Derivative problem:

What is VAT?

Value-added tax is a turnover tax levied on the basis of the value-added generated in the process of commodity circulation. From the tax principle, value-added tax is a turnover tax levied on the added value of many links such as commodity production, circulation and labor services or the added value of commodities. Value-added tax is a tax levied on the value-added of units and individuals who sell goods or provide processing, repair and replacement services and import goods.