The following items shall be exempt from value-add tax:(1)Self-produced agricultural products sold by agr icultural producers;(2)Contraceptive medicines and deviced;(3)Antique books;(4)Importation of instruments and equipment direct ly used in scientific research, experiment and edu cation;(5)Importation of materials and equipment from for eign goverments and international organizations as assistance free of charge;(6)Equipment and machenery required to be imported under contract processing, contract assembly and compensation trade;(7)Articles imported directly by organizations for the disabled for special use by the disabled;(8)Sale of goods which have been used by the sellers.

Excipt as stipulated in the above paragrph, the VAT exemption and reduction items shall be regulate d by the State Council. Local governments or depar tments shall not regulate any tax exemption or red uction items.

For taxpayers engaged in tax exempt or tax reduced items, the sales amounts for tax exempt or tax red uced items shall be accounted for separately, If t he sales amounts have not been separately accounte d for, no exemption or reduction is allowed.

For taxpayers whose sales amounts have not reached the VAT minimum threshold stipulated by the Minist ry of Finance, the VAT shall be sxempt.

(Lawyer Wu Yingjie)