According to Article 21 of the Provisional Regulations on Value-added Tax in People's Republic of China (PRC), a taxpayer selling goods or taxable services shall issue a special VAT invoice to the buyer who asks for a special VAT invoice. Under any of the following circumstances, a special VAT invoice shall not be issued: (2) The sales of goods or taxable services are subject to tax exemption provisions; In line with the above conditions, the business of agricultural producers planting Chinese herbal medicines and selling seeds and seedlings belongs to the scope of tax exemption; Ordinary invoices can be issued to the buyer, but special invoices for value-added tax cannot be issued.
According to Article 15 of the Provisional Regulations on Value-added Tax in People's Republic of China (PRC), the following items are exempt from value-added tax: (1) Self-produced agricultural products sold by agricultural producers; According to the first provision of the Notice of the Ministry of Finance of People's Republic of China (PRC), State Taxation Administration of The People's Republic of China on the Policy of Exempting Some Agricultural Means of Production from VAT, the following goods are exempt from VAT: wholesale and retail seeds, seedlings, fertilizers, pesticides and agricultural machinery.