Ministry of Finance, State Administration of Taxation: Express delivery companies shall pay value-added tax on the income obtained from providing express delivery services in accordance with the "collection and delivery services".

On August 12th, the Ministry of Finance and the State Administration of Taxation issued an announcement clarifying the value-added tax policies for express delivery services, which will take effect from the date of publication. It mentions that the income obtained by express delivery companies for providing express delivery services will be subject to value-added tax based on "collection and delivery services". Taxpayers with the qualification for road goods transportation operation on a network platform, engaging in network freight transport operations, purchasing and delivering finished oil, natural gas, electricity, hydrogen, dimethyl ether, methanol, and other types of vehicle fuels (energy) to the actual carriers for use, and paying for road, bridge, and gate toll fees, while meeting the conditions specified in the announcement, are allowed to deduct input tax amounts from output tax amounts. The original text is as follows: Announcement on Clarifying Value-Added Tax Policies for Express Delivery Services Announcement No. 5 of 2025 from the Ministry of Finance and the State Administration of Taxation The announcement on value-added tax policies for express delivery services is as follows: 1. The income obtained by express delivery companies for providing express delivery services is subject to value-added tax based on "collection and delivery services". Express delivery companies, as referred to in this announcement, are enterprises engaged in express delivery business operations within the territory and legally obtaining a license for express delivery business operations, the branches filed with the postal administration by the above-mentioned enterprises, or the express end-point branches filed with the postal administration by the above-mentioned enterprises or branches. The express end-point branches refer to operating points providing end-point services for express delivery. Express delivery services, as referred to in this announcement, are business activities completing the collection, sorting, transportation, and delivery of express items within the specified time limit, excluding business activities where express delivery companies only provide transportation services. End-point services refer to the collection and delivery services mentioned above. Express items refer to items such as letters, parcels, and printed materials delivered by express delivery companies. Collection services refer to the business activities of express delivery companies accepting consignments from senders, completing services such as ordering, inspecting, packaging, and sealing of express items. Sorting services refer to the business activities of express delivery companies classifying and sealing express items. Delivery services refer to the business activities of express delivery companies delivering express items to the designated addresses or recipients in the agreed manner. 2. Taxpayers with the qualification for network platform road goods transp