How does a general taxpayer deduct input tax when purchasing domestic passenger transportation services?

2026-02-26 22:14:20

Abstract generation in progress

Q: How can general taxpayers deduct input VAT when purchasing domestic passenger transportation services?

A: According to the “Announcement of the Ministry of Finance and the State Taxation Administration on Matters Concerning the Deduction of Input VAT and Other Related Issues” (Cai Shui [2026] No. 13), 1. Regarding the deduction of input VAT

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(2) For general taxpayers purchasing domestic passenger transportation services, in addition to obtaining a special VAT invoice, the deductible input VAT can be determined according to the following rules:

If electronic invoices (railway electronic tickets), electronic invoices (airline electronic boarding passes) are obtained, the VAT amount listed or included on the invoice;
For tickets that specify passenger identity information, such as road and waterway tickets, the input VAT can be calculated using the following formula:

Deductible input VAT for road, waterway, and other passenger transportation = Ticket face value ÷ (1 + 3%) × 3%

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This announcement shall be effective from January 1, 2026. If there are any inconsistencies with previous regulations, this announcement shall prevail.

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