Can the input tax of industrial kiln be deducted?

The input tax on materials purchased by enterprises in building production workshops cannot be deducted. The construction of production workshops cannot be deducted from the input. Because building a factory is a non-VAT taxable item, and because building a factory belongs to the category of construction industry, it is called business tax. Value-added tax means no output, no input. If the purchased goods are used for non-VAT taxable items, they are not regarded as sales, that is, there is no output, so the input cannot be deducted. These materials were originally bought to build a factory building, that is, the purpose was clear, and this part was directly included in the cost of engineering materials. The Provisional Regulations on Value-added Tax in People's Republic of China (PRC) (the State Council Order No.538, 2008 of the People's Republic of China) stipulates: Article 10 The input tax of the following items shall not be deducted from the output tax: (1) Goods purchased or taxable services used for non-VAT taxable items, tax-exempt items, collective welfare or personal consumption; (2) Abnormal losses of purchased goods and related taxable services; (3) Goods purchased or taxable services consumed by products in process and finished products with abnormal losses; (four) consumer goods for taxpayers' own use as prescribed by the competent departments of finance and taxation of the State Council; (five) the transportation costs of goods and the transportation costs of selling duty-free goods as stipulated in items (1) to (4) of this article. Article 23 of the Detailed Rules for the Implementation of the Provisional Regulations on Value-added Tax (Order No.50 of State Taxation Administration of The People's Republic of China of the Ministry of Finance) stipulates that the non-VAT taxable items mentioned in Item (1) of Article 10 of the Regulations and these Detailed Rules refer to providing non-VAT taxable services, transferring intangible assets, selling real estate and real estate projects under construction. The term "immovable property" as mentioned in the preceding paragraph refers to the property that cannot be moved or will change its nature and shape after being moved, including buildings, structures and other ground attachments. Taxpayers' newly built, rebuilt, expanded, repaired and renovated real estates are all real estate projects under construction. The construction of public buildings and production plants used by enterprises belongs to real estate projects under construction, and the building materials purchased for real estate projects under construction belong to non-VAT taxable items. Therefore, the input tax shall not be deducted.