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The tax exemption rate is also called "zero tax rate". Refers to the tax rate expressed as zero for a certain tax object and a certain tax object in a specific link. Theoretically speaking, zero tax rate is different from tax exemption. Tax exemption refers to the exemption of a certain tax object and a certain taxpayer from their own burden, while the goods or services purchased are still tax-included.
The tax rate is zero. Not only do taxpayers not pay taxes in this link, but also the taxes transferred from previous links must be refunded, so that the tax rate can be zero. But in practical work, the meaning of zero tax rate is not strict in the use of different taxes. For example, income tax often corresponds to the tax-free amount of taxable income, which is expressed at zero tax rate. Of course, income tax does not have the problem of transferring tax. Another example is the adjustment tax on the investment direction of fixed assets. The investment project with zero tax rate only refers to the tax exemption of the investment project itself, and all kinds of goods and services purchased by it are actually tax-included, and the value-added tax paid will not be refunded. What truly embodies the theoretical definition of zero tax rate is that the value-added tax implements zero tax rate on export products, that is, taxpayers can not only not pay the taxable amount of the value-added in this link, but also refund the tax paid for the value-added in previous links.
The tax exemption of value-added tax only exempts taxpayers from the taxable amount of value-added in this link, and the goods and services purchased by taxpayers still include tax. The purpose of implementing zero tax rate on export products is to encourage exports and make our products compete in the international market at a price that is completely tax-free.