Notice of State Taxation Administration of The People's Republic of China, Ministry of Finance on Comprehensively Promoting the Pilot Project of Changing Business Tax to VAT (Caishui [2016] No.36)
Since May of 16 and 1 year, the original VAT general taxpayer has purchased services, intangible assets or real estate, and the VAT indicated on the special VAT invoice obtained is the input tax, which can be deducted from the output tax;
For motorcycles, automobiles and yachts that are subject to consumption tax for their own use, the input tax is allowed to be deducted from the output tax;
Where the purchase of labor services, intangible assets or real estate from overseas units or individuals requires the withholding of value-added tax, the input tax allowed to be deducted from the output tax is the value-added tax indicated on the tax payment certificate obtained from the tax authorities or withholding agents;
Items listed in sales service notes, intangible assets or real estate that purchase goods or accept processing, repair and replacement services do not belong to non-VAT taxable items mentioned in Article 10 of the Provisional Regulations on VAT, and their input tax amount is allowed to be deducted from the output tax amount.