The basic rate of VAT for agricultural film, chemical fertilizer, pesticide and agricultural machinery is 13%. However, in order to encourage agricultural development, all aspects of agricultural film are tax-free, and wholesale and retail of chemical fertilizers, pesticides and agricultural machinery are tax-free. Only the production and sales of pesticides and agricultural machinery need to pay 13% output tax.

The problem of collecting value-added tax in fertilizer production is complicated. Let's summarize the relevant policies:

According to People's Republic of China (PRC) State Taxation Administration of The People's Republic of China Finance [2001]13 document, the production of nitrogen fertilizer other than urea, phosphate fertilizer other than diammonium phosphate, potash fertilizer and compound fertilizer with duty-free fertilizer as the main raw material (the cost of cotton tax fertilizer used by enterprises to produce compound fertilizer products accounts for more than 70% of the total cost of fertilizer in raw materials) is exempt from value-added tax.

Wholesale and retail fertilizers are exempt from VAT.

On June 5438+February 2004 1, potash fertilizer was changed from tax-free to tax-collected before returning.

From July 1 2005, the value-added tax on urea products produced and sold by domestic enterprises was adjusted from being levied first and then returning 50% to being temporarily exempted from value-added tax.

From June 1 day, 2008, taxpayers' production, wholesale and retail of organic fertilizer products are exempt from value-added tax.

Since February 1 2007, ammonium nitrate no longer enjoys the policy of exempting chemical fertilizer products from value-added tax.