Value-added tax electronic ordinary invoices that specify passenger identity information can be used for tax deduction

Recently, the Ministry of Finance and the State Taxation Administration jointly issued a notice regarding the deduction of input VAT and related matters. There has been public concern over whether electronic invoices (ordinary invoices) issued for domestic passenger transportation services can be used as input tax deductions for VAT. On February 6, reporters interviewed industry insiders and experts who explained that VAT electronic ordinary invoices that specify passenger identity information can be used for tax deduction. Professor Zhu Qing from the School of Finance and Taxation at Renmin University of China stated that the notice clearly indicates that general taxpayers purchasing domestic passenger transportation services can deduct input VAT based on the following: in addition to obtaining special VAT invoices, they can also obtain electronic invoices (railway electronic tickets), electronic invoices (airline electronic tickets and itineraries), and other tickets such as road and waterway tickets that specify passenger identity information. These can be used to determine the deductible input tax from the output tax according to regulations. “For example, companies with frequent employee travel can obtain special VAT invoices from companies providing road transportation services such as ride-hailing apps for input tax deduction. If they obtain electronic invoices (ordinary invoices) that specify employee identity information, they can also deduct according to regulations. This is no different from before and will not affect the normal deduction of related input taxes for enterprises,” Zhu Qing said. (Xinhua News Agency)