Core Viewpoint - The article discusses the implementation of tax incentives for agricultural production, specifically focusing on the value-added tax (VAT) input tax deduction for agricultural products, aimed at promoting the development of rural specialty industries [2][3]. Summary by Relevant Sections Tax Incentives for Agricultural Production - Since July 1, 2012, general VAT taxpayers engaged in the production and sale of liquid milk, dairy products, alcoholic beverages, and vegetable oils can deduct VAT input tax on purchased agricultural products, regardless of whether these products are used in production [2]. - From September 1, 2013, local tax authorities can collaborate with financial departments to select specific industries for the VAT input tax deduction pilot program based on regional characteristics [2]. - Taxpayers can calculate VAT input tax using methods such as input-output method, cost method, or reference method [2]. Eligibility Criteria - Agricultural products must be listed in the "Scope of Agricultural Products Subject to Tax" as per the relevant notification [3]. - Taxpayers producing goods from agricultural products must apply for deduction standards to the tax authority by January 15 of the current year or within 30 days of production commencement [4]. - The deduction for VAT input tax on purchased agricultural products for direct sales or production must be recorded with the tax authority during tax declaration [4]. Policy Basis - The article references several official notifications and regulations that provide the legal framework for the VAT input tax deduction for agricultural products [10].

Core Viewpoint - The article discusses the implementation of a pilot program for the deduction of input VAT on agricultural products, detailing the methods and regulations involved in calculating the deductible VAT for businesses in specific industries [4][5]. Summary by Sections Input VAT Deduction Mechanism - The pilot program allows businesses to calculate deductible input VAT on agricultural products using methods such as the input-output method, cost method, and reference method, rather than relying solely on VAT invoices [2][4]. - The formula for calculating the allowable deductible input VAT on agricultural products is: \[ \text{Allowable Deductible Input VAT} = \frac{\text{Quantity of Agricultural Products Used} \times \text{Average Purchase Price} \times \text{Deduction Rate}}{1 + \text{Deduction Rate}} \] [3]. Pilot Program Implementation - Since July 1, 2012, businesses that purchase agricultural products to produce and sell liquid milk, alcoholic beverages, and vegetable oils are included in the pilot program, allowing them to deduct input VAT regardless of whether the agricultural products are used in production [4]. - From September 1, 2013, local tax authorities can collaborate with financial departments to select specific industries for the pilot program based on local characteristics [4]. Eligibility and Application - Agricultural products eligible for the program must be listed in the official tax guidelines [5]. - Businesses must submit a deduction standard application to the tax authority by January 15 each year or within 30 days of production commencement [5]. - The deduction for businesses that directly sell agricultural products or use them in operations without forming a physical product follows a record-keeping system [5].