Article 10 of the Provisional Regulations on Value-added Tax stipulates that the input tax of the following items shall not be deducted from the output tax:

(1) Goods purchased or taxable services used for non-VAT taxable items, VAT exempted items, collective welfare or personal consumption;

(2) Abnormal losses of purchased goods and related taxable services;

(3) Goods purchased or taxable services consumed by products in process and finished products with abnormal losses;

(four) consumer goods for taxpayers' own use as prescribed by the competent departments of finance and taxation of the State Council;

(five) the transportation costs of goods and the transportation costs of selling duty-free goods as stipulated in items (1) to (4) of this article.

According to the above regulations, the input tax indicated on the special VAT invoice for employees' education expenses can be deducted according to the regulations, but the related input tax for welfare expenses cannot be deducted.

Changing business tax into value-added tax (hereinafter referred to as "VAT reform") refers to changing taxable items that used to pay business tax into value-added tax, and only paying taxes on the value-added part of products or services to reduce double taxation. This is an important decision made by the CPC Central Committee and the State Council according to the new situation of economic and social development and the overall arrangement of deepening reform. The purpose is to accelerate the reform of the fiscal and taxation system, further reduce the negative tax revenue of enterprises, mobilize the enthusiasm of all parties, promote the development of service industries, especially high-end service industries such as science and technology, and promote the upgrading and cultivation of industries and consumption.