Tax-free. According to Article 15 of the "Interim Regulations of the People's Republic of China on Value-Added Tax", contraceptives and appliances are tax-free products. Therefore, the production and operation of contraceptives and appliances do not need to pay value-added tax.
What are the tax-free items?
1. Self-produced agricultural products sold by agricultural producers.
Agriculture: planting, breeding, forestry, animal husbandry, and aquaculture.
2. Contraceptives and appliances.
3. Ancient books: ancient and used books purchased from the public.
4. Imported instruments and equipment directly used for scientific research, scientific experiments and teaching.
5. Imported materials and equipment provided with free assistance from foreign governments and international organizations.
6. Organizations of persons with disabilities directly import items intended for use by persons with disabilities.
7. Sold items that have been used by oneself. Items that have been used by oneself refer to items that have been used by other individuals.
Enterprise income tax exemption items include the cultivation of vegetables, grains, potatoes, oil crops, beans, cotton, hemp, sugar, fruits, and nuts; the breeding of new crop varieties; the cultivation of traditional Chinese medicinal materials; Cultivation and planting of forest trees; raising of livestock and poultry; collection of forest products; irrigation, primary processing of agricultural products, veterinary medicine, agricultural technology extension, agricultural machinery operation and maintenance and other agricultural, forestry, animal husbandry and fishery service projects; offshore fishing.
To sum up, condoms are tax-free items and are exempt from tax, not 0 tax rate.
Legal basis:
"Provisional Regulations of the People's Republic of China on Value-Added Tax"
Article 15
The following items Exemption from value-added tax:
(1) Self-produced agricultural products sold by agricultural producers;
(2) Contraceptives and appliances;
(3) Antiquities Books;
(4) Imported instruments and equipment directly used for scientific research, scientific experiments and teaching;
(5) Imported materials and equipment provided with free assistance from foreign governments and international organizations ;
(6) Articles for use by persons with disabilities directly imported by organizations of persons with disabilities;
(7) Articles sold for personal use.
Except for the provisions of the preceding paragraph, VAT exemption and tax reduction items shall be stipulated by the State Council. No region or department may stipulate tax exemption or tax reduction items.