According to the provisions of the "Notice of the Ministry of Finance and the State Administration of Taxation on the VAT Exemption Policy for Certain Agricultural Production Materials" (Caishui "2001" No. 113), the production and sale of nitrogen fertilizers other than urea and phosphoric acid Phosphate fertilizers, potassium fertilizers other than diammonium, and compound fertilizers with duty-free chemical fertilizers as the main raw materials (the cost of tax-free fertilizers used by enterprises to produce compound fertilizer products account for more than 70% of the total fertilizer costs in raw materials) are exempt from value-added tax.