Legal analysis: 1. Wholesale and retail agricultural machinery are not exempt from enterprise income tax at present. You can only enjoy tax exemption on VAT.

2. Enterprises engaged in the wholesale and retail of agricultural machinery can be exempted from value-added tax regardless of whether the state has subsidies.

3. The enterprise may go through the relevant filing procedures for exemption from VAT with the competent tax authorities as required.

Legal basis: Notice of State Taxation Administration of The People's Republic of China, Ministry of Finance of People's Republic of China (PRC), on the policy of exempting some agricultural means of production from VAT.

1. The following goods are exempt from VAT:

1, agricultural film.

2. Nitrogen fertilizer other than urea, phosphate fertilizer other than diammonium phosphate, potash fertilizer produced and sold, and compound fertilizer with duty-free fertilizer as the main raw material (the cost of duty-free fertilizer used by enterprises to produce compound fertilizer accounts for more than 70% of the raw material cost of all fertilizer costs). "Compound fertilizer" refers to a fertilizer containing at least two of the three nutrients of nitrogen, phosphorus and potassium processed by chemical or physical methods, including compound fertilizer made only by chemical methods and mixed fertilizer made only by physical methods (also called mixed fertilizer).

3. Production and sales of abamectin, fenpropathrin, chlorothalonil, tribenuron-methyl, bensulfuron-methyl, imidacloprid, allethrin, pyridaben, mancozeb, isoprothiolane, trichlorfon, butachlor, acetamiprid, polyoxin, pendimethalin, diazinon, trifluralin, beta-cypermethrin and dipyridamole. Prochloraz, methomyl, mirex, Spodoptera exigua nuclear polyhedrosis virus, thisulfuron-methyl, cypermethrin, triazophos, triadimefon, dimehypo, cis-cypermethrin, aldicarb, diniconazole, phoxim, octanoyl bromonitrile, metolachlor, mixture A, acetochlor and acephate.

4. Wholesale and retail seeds, seedlings, fertilizers, pesticides and agricultural machinery.

Two, the unified collection of value-added tax on the production and sales of urea, and in 200 1, 2002, the implementation of the value-added tax policy. 200 1 of the tax collected will be refunded in full, 50% in 2002, and the refund policy will be stopped from 2003. Specific VAT refund matters shall be handled by the local offices of the Financial Ombudsman of the Ministry of Finance in accordance with the relevant provisions of the Notice of the Ministry of Finance, the People's Bank of China, State Taxation Administration of The People's Republic of China and the People's Bank of China on the Interim Provisions on Budget Management of Some Enterprises after Tax Reform ([94] FB No.55).