We discuss complete theory of spin-1/2 electron-positron quantum plasmas, when electrons and positrons move with velocities mach smaller than the speed of light. We derive a set of two fluid quantum hydrodynamic equations consisting of the continuity, Euler, spin (magnetic moment) evolution equations for each species. We explicitly include the Coulomb, spin-spin, Darwin and annihilation interactions. The annihilation interaction is the main topic of the paper. We consider contribution of the annihilation interaction in the quantum hydrodynamic equations and in spectrum of waves in magnetized electron-positron plasmas. We consider propagation of waves parallel and perpendicular to an external magnetic field. We also consider oblique propagation of longitudinal waves. We derive set of quantum kinetic equations for electron-positron plasmas with the Darwin and annihilation interactions. We apply the kinetic theory for the linear wave behavior in absence of external fields. We calculate contribution of the Darwin and annihilation interactions in the Landau damping of the Langmuir waves. We should mention that the annihilation interaction does not change number of particles in the system. It does not related to annihilation itself, but it exists as a result of interaction of an electron-positron pair via conversion of the pair into virtual photon. A pair of the non-linear Schrodinger equations for electron-positron plasmas including the Darwin and annihilation interactions. Existence of conserving helicity in electron-positron quantum plasmas of spinning particles with the Darwin and annihilation interactions is demonstrated. We show that annihilation interaction plays an important role in quantum electron-positron plasmas giving contribution of the same magnitude as the spin-spin interaction.