According to the Notice of the Ministry of Finance of State Taxation Administration of The People's Republic of China on Adjusting the VAT Rate, the VAT rate of the transportation industry is adjusted to 10%. This tax rate is applicable to the transportation industry, including land transportation service, water transportation service, air transportation service and pipeline transportation service. This means that no matter whether goods or passengers are transported by these means, the services involved will be subject to VAT at the rate of 10%.
Tax classification in transport invoice:
1. VAT ordinary invoice: applicable to small-scale taxpayers who have not reached a certain scale;
2. Special VAT invoice: applicable to general taxpayers and can be used to offset the input tax;
3. Electronic invoice: it is suitable for e-commerce and other fields, and can be issued and transmitted online;
4. Roll invoice: suitable for retail and other occasions that require a large number of quick invoices;
5. Passenger transport invoice: specially used for taxi, bus and other passenger transport industries;
6. Freight invoice: It is specially used in the freight industry, such as the transportation service invoice issued by logistics companies.
To sum up, according to the Notice of State Taxation Administration of The People's Republic of China, People's Republic of China (PRC) issued by the Ministry of Finance, the VAT rate of transportation industry is adjusted to 10%, which is applicable to land transportation, water transportation, air transportation and pipeline transportation services. Goods and passengers are subject to VAT at the rate of 10%.
Legal basis:
Measures for the implementation of the pilot reform of business tax to value-added tax in transportation industry and some modern service industries
Article 22
The following input taxes are allowed to be deducted from the output tax:
Value-added tax indicated on the special invoices for value-added tax obtained from sellers or providers (including special invoices for value-added tax on goods transportation and unified invoices for tax-controlled motor vehicle sales, the same below).
The value-added tax amount indicated in the special payment letter for customs import value-added tax obtained from the customs.
When purchasing agricultural products, in addition to obtaining the special VAT invoice or the special payment letter for customs import VAT, the input tax shall be calculated according to the purchase price of agricultural products and the deduction rate 13% indicated on the agricultural product purchase invoice or sales invoice. The calculation formula is: input tax = input price multiplied by deduction rate. The purchase price refers to the price indicated on the purchase invoice or sales invoice of agricultural products purchased by taxpayers and the tobacco tax paid in accordance with the regulations.
For accepting railway transportation services, the input tax shall be calculated according to the amount of transportation expenses indicated on the railway transportation expense settlement document and the deduction rate of 7%. Input tax calculation formula: input tax = transportation expense amount multiplied by deduction rate. The amount of transportation expenses refers to the transportation expenses (including the transportation expenses of temporary railway pipelines and special railway lines) and construction funds indicated in the settlement documents of railway transportation expenses, excluding handling fees, insurance premiums and other miscellaneous fees.
Accepting taxable services provided by overseas units or individuals, and obtaining the value-added tax indicated on the People's Republic of China (PRC) tax payment voucher (hereinafter referred to as the tax payment voucher) from the tax authorities or domestic agents.