Legal basis:
Notice of State Taxation Administration of The People's Republic of China, Ministry of Finance on comprehensively pushing forward the pilot project of changing business tax to value-added tax
Article 27 The social and entertainment consumption of taxpayers belongs to personal consumption, and the input tax shall not be deducted from the output tax.
Article 2 The original general VAT taxpayer accepts taxable services provided by the pilot taxpayers, and the input tax amount of the following items shall not be deducted from the output tax amount (1) It is used for simple taxation items, non-VAT taxable items, VAT-exempt items, collective welfare or personal consumption, and the patented technology, non-patented technology, goodwill, trademark, copyright and tangible chattel lease involved only refer to the patented technology, non-patented technology, goodwill and personal consumption dedicated to the above items. (3) Transportation services related to purchased goods with abnormal losses. (4) Transportation services related to purchased goods consumed by products in process and finished products with abnormal losses. The above-mentioned non-VAT taxable items
refer to the non-VAT taxable items mentioned in Article 1 of the Provisional Regulations on VAT, but do not include the items listed in the Notes on Taxable Service Scope.