According to the 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, 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.