The Notice of State Taxation Administration of The People's Republic of China on Several Issues Concerning the Clarification of VAT Policies and Management stipulates that:
Input tax deduction
(1) The repair cost and fuel cost of the taxpayer's motorcycle, automobile and yacht for personal use shall be allowed to be deducted from the input tax.
When the Ministry of Finance of People's Republic of China (PRC) and State Taxation Administration of The People's Republic of China revised the Provisional Regulations on Value-added Tax, referring to international practice, it was stipulated that the above-mentioned articles for personal use should not be deducted from the input tax, and the expenses for automobile repair can be accurately collected on specific vehicles and cannot be deducted.
Buckle; It is difficult to collect the fuel cost of a car on a specific vehicle, and it is also impossible to share the input tax according to the proportion of sales. Therefore, the fuel cost of the car can be deducted temporarily.
(II) Article 10 of the Provisional Regulations on Value-added Tax stipulates that the input tax of goods purchased or taxable services for non-VAT taxable items and VAT-exempt items: collective welfare and personal consumption cannot be deducted from the output tax.
(3) Motorcycles, automobiles and yachts subject to VAT for taxpayers' own use refer to those used for production and operation, not for collective welfare or personal consumption, such as taking employees to and from work. In this case, the input tax is allowed to be deducted.