How to understand the sentence "goods produced or commissioned for processing are regarded as sales for non-VAT taxable items"?

According to the Detailed Rules for the Implementation of the Provisional Regulations on VAT, non-VAT taxable items refer to providing non-VAT taxable services, transferring intangible assets, selling real estate and real estate projects under construction.

These include:

1. Non-VAT taxable services: refers to the services of transportation, construction, finance and insurance, post and telecommunications, culture and sports, entertainment and service industries that taxpayers engage in and pay business tax;

2. Transfer of intangible assets: refers to the income obtained from the transfer of intangible assets such as patents, non-patented technologies, trademarks, copyrights and land use rights;

3. Real estate: refers to the property that cannot be moved or will change its nature and shape after moving, including buildings, structures and other land attachments.

4. Real estate projects under construction: refer to the construction, reconstruction, expansion, repair and decoration projects of the above-mentioned real estate.

"Selling goods" in the taxable scope of value-added tax refers to the paid transfer of the ownership of goods. However, if the self-produced or entrusted processing and recycling goods are used in the above-mentioned projects, although they do not meet the conditions of paid transfer of ownership, they are regarded as selling goods according to regulations and subject to value-added tax.