The Ministry of Finance and the State Administration of Taxation released related matters on value-added tax input tax deduction.

On February 2nd, the Ministry of Finance and the State Administration of Taxation issued a notice regarding matters related to VAT input tax deduction, which will be implemented starting from January 1, 2026. The notice mentions that for general taxpayers who purchase vehicles and obtain a unified vehicle sales invoice, the input tax amount that can be deducted from the output tax amount is determined based on the VAT amount specified on the invoice. General taxpayers who purchase domestic passenger transportation services, road tolls, bridges, and gate passage services, other than obtaining special VAT invoices, need to determine the input tax amount that can be deducted from the output tax amount according to relevant regulations. In addition, the notice also provides provisions for taxpayers implementing asset restructuring through mergers, spin-offs, sales, swaps, and other methods, as well as regulations regarding the application of tax rates for main business activities subject to taxable transactions involving two or more tax rates.