First of all, according to the "People's Republic of China (PRC) Value-added Tax Law", the production and sales of agricultural products are exempt from value-added tax, but the producers and sellers of agricultural products can choose the taxpayer status, and the production and sales activities of agricultural products under the taxpayer status should pay value-added tax according to regulations.
Secondly, for ordinary VAT invoices issued by agricultural cooperatives, according to the tax policy, the tax rate is 3%. However, for small-scale taxpayers, they can choose to enjoy the simple tax calculation method, that is, according to 1% of sales.
Therefore, if Shanghai Rural Cooperative is a small-scale taxpayer, it can choose to tax according to 1% of sales. If it is not a small-scale taxpayer, the tax will be levied at the rate of 3% stipulated in the VAT Law.
Note: According to the tax policy, the production and sales of agricultural products are exempt from VAT, but you can choose to pay VAT as a taxpayer. Ordinary VAT invoices issued by agricultural cooperatives have a tax rate of 3%. However, small-scale taxpayers can enjoy a simple tax calculation method, that is, tax is calculated according to 1% of sales.
Expansion: In addition to 1% of sales, small-scale taxpayers can also choose to tax 3% of sales or the difference between sales and input tax. In addition, for producers and sellers of agricultural products, you can also choose the preferential policy of agricultural products value-added tax, and you can consult the local tax authorities for details.