The invoice for clothes can't be tax-free. Deduction items allow vat to be deducted from pre-tax profits. China began to reform the tax system from 1994, and implemented the value-added tax system. Enterprises selling goods and taxable services must pay taxes at a certain rate, which is the output tax of value-added tax. When purchasing goods, the other party will also issue a special VAT invoice for the purchased goods, but I must be a general taxpayer.

Tax credit

The tax on special invoices can be deducted, but ordinary invoices cannot. General taxpayers selling goods or providing taxable services shall issue special invoices to the buyers. Consumer goods such as cigarettes, alcohol, food, clothing, shoes and hats (excluding special labor protection parts) and cosmetics retailed by general taxpayers in commercial enterprises may not issue special invoices. Special invoices shall not be issued for the sale of duty-free goods, except as otherwise provided by laws and regulations of People's Republic of China (PRC) and State Taxation Administration of The People's Republic of China. For example, state-owned grain purchase and sale enterprises can issue special invoices.