[Knowledge Growth] Ten Questions and Ten Answers on VAT Input Tax Deduction for Agricultural Products

(1)Q：When a general taxpayer purchases agricultural products and obtains a 9% VAT special invoice issued by the seller, how is the input tax amount calculated?

Answer：For purchased agricultural products used for producing or entrusted processing of goods subject to a 13% tax rate, deduct 9% at purchase, and add an additional 1% deduction at production use, totaling a 10% deduction rate; if used for other purposes, deduct based on the VAT amount stated on the invoice, i.e., a 9% tax rate deduction.

（II）Q：Purchasing agricultural products from a small-scale taxpayer and obtaining a special VAT invoice with a 3% levy rate: how is the deduction calculated?

Answer：Calculate the input tax amount based on the amount stated on the invoice and a 9% deduction rate. If used for the production and sale of goods subject to a 13% tax rate or for commissioned processing, an additional 1% deduction may be added when agricultural products are drawn for production use.

（Three）Q：For customs import VAT special payment certificates obtained, how is input VAT deducted?

Answer：Where a taxpayer imports goods and has paid the value-added tax at the import stage, regardless of whether the payment for goods has been made, the customs duty-paid certificate obtained may serve as a value-added tax input tax deduction voucher.

（IV）Q：Can general invoices obtained by a taxpayer from purchasing vegetables, fresh meat and eggs at the wholesale or retail stage be deducted?

Answer:No. General invoices obtained from purchasing vegetables and fresh meat and eggs that are subject to VAT exemption policies at the wholesale and retail stages shall not be used as vouchers for calculating input tax deductions.

（V）Q：Can a special VAT invoice for agricultural products with a 1% levy rate obtained from a small-scale taxpayer be deducted at 9%?

Answer:No, input VAT can only be calculated at the agricultural product purchase price stated on the invoice and a 1% deduction rate.

（Six）Q：What is the approved deduction of input VAT on agricultural products?

Answer：VAT general taxpayers that produce and sell liquid milk and dairy products, alcohol and spirits, vegetable oil, cotton yarn, canned meat products, and other products using purchased agricultural products that meet regulations as raw materials are included in the pilot scope of the approved deduction of VAT input tax on agricultural products.

（Seven）Q：How to deduct when purchased agricultural products are used both for producing goods subject to a 13% tax rate and for producing other goods and services?

Answer：They should be accounted for separately. If not accounted for separately, the input tax amount shall be uniformly based on the VAT amount indicated on special VAT invoices or special customs import VAT payment documents, or calculated based on the agricultural product purchase price indicated on agricultural product acquisition invoices or sales invoices and the 9% deduction rate.

（Eight）Q：Can input tax on agricultural products used for projects taxed under the simplified tax calculation method be deducted?

Answer：No. Input tax on purchased goods, etc., used for projects taxed under the simplified taxation method, VAT-exempt projects, collective welfare, or personal consumption may not be deducted.

（Nine）Q：For agricultural products with abnormal losses, should the input VAT amount be transferred out?

Answer：It must be transferred out. For purchased goods with abnormal losses, as well as related processing, repair and replacement labor services and transportation services, the input VAT amount shall not be deducted from the output VAT amount, and any amount already deducted must be transferred out.

（10）Q：How is the additional deduction for agricultural products handled?

Answer：The taxpayer needs to contact the competent tax authority to complete the "agricultural product deep-processing enterprise" identity classification; after deduction selection, when actually put into production, select through the [Agricultural Product Additional Deduction Selection] module for an additional 1% deduction.

Source: Shanghai Tax

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