Q：
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For the passenger transportation expenses that a company paid for non-employees (such as clients, specialists invited to give lessons and other personnel that have business relationship), can relevant VAT input tax be deducted?
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A：
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No, in accordance with relevant regulations, only the input tax on domestic transportation expenses incurred by an enterprise’s lawful employees and the expenses should relate to business operation, not employee welfare.
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Q：
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My company intends to buy 20 air tickets to reward outstanding staff teams, can the corresponding VAT input tax be deducted from output tax?
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A：
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No, the input tax on collective welfare expenses or individual consumption items cannot be deducted from output tax.
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Q：
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Our company paid cancellation fee to air agency due to cancellation of staff’s business trip and obtained VAT special invoice at rate of 6%. Can we deduct the input tax of this invoice?
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A：
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Yes.
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Q：
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How should we deal with the excess input VAT credits which are not deducted yet if our company transfers from VAT general taxpayer to small-scale taxpayer?
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A：
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The input VAT which are not deducted yet and period-end excess input VAT credits as at the date of transfer shall be accounted for in ‘Tax payable – Input tax to be deducted’.
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Q：
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Where VAT general taxpayer purchases domestic passenger transportation service, what kinds of vouchers can be seemed as input VAT proof?
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A：
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VAT general taxpayer purchases domestic passenger transportation service, vouchers which may be seemed as input VAT proof are: VAT special invoice, VAT general e-invoice, and air transport e-ticket itinerary, railway ticket, highway and waterway passenger ticket stating passenger’s ID information.
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Q：
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For the additional input VAT deduction that should have been accrued but are not accrued yet, can taxpayer account for the accrual? If yes, should the taxpayer adjust the monthly tax return or account for the accrual in current period?
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A：
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Yes, the accrual of additional input VAT deduction can be made in current period and no need to adjust previous period tax return.
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FAQ
