The transportation expenses paid by general VAT taxpayers for purchasing goods (except fixed assets) and the freight settlement vouchers (ordinary invoices) allowed to be deducted refer to the invoices issued by state-owned railway, civil aviation, highway and water transport units, as well as the invoices issued by non-state-owned transport units engaged in cargo transportation that overprint the national unified invoice producer seal. The amount of freight allowed to be deducted refers to the freight and construction fund indicated on the invoice issued by the transport unit, excluding the handling fees, insurance premiums and other miscellaneous fees paid with the freight. [People's Republic of China (PRC) State Taxation Administration of The People's Republic of China Guoshuihan Fa (1995) No.288]
Freight invoice type that allows calculation of input tax deduction. According to the regulations, the transportation expenses paid by general VAT taxpayers for purchasing and selling goods (excluding fixed assets) and the freight settlement vouchers (ordinary invoices) that are allowed to be deducted refer to the freight tickets issued by state-owned railway, civil aviation, highway and water transport units, as well as the freight tickets issued by non-state-owned transport units engaged in cargo transportation with the stamp of national unified invoice producer. The types of freight invoices that are allowed to calculate the input tax deduction do not include the freight quota invoice obtained by general VAT taxpayers. For freight invoices that are allowed to calculate the input tax deduction, the items such as consignor, consignee, place of departure, place of arrival, mode of transportation, name of goods, quantity of goods, transportation unit price and freight amount must be complete and equal to the related items listed in the purchase invoice, otherwise it will not be deducted. [Document Guo Shui Fa (1995) 192]
The freight tickets that are allowed to be deducted shall be strictly in accordance with the types specified in Guo Fa (1995) No.288 and Guo Shui Fa (1995) 192. Freight invoices issued by non-transport units and departments and freight receipts issued by railway transport departments themselves shall not be used as the basis for deduction.