How can enterprises quickly and efficiently complete VAT deduction for passenger transport services | Intelligent OCR Recognition

I. FAQs on VAT Deduction for Passenger Transport Services

1.Our company is a general VAT taxpayer. For purchased passenger transport, what types of vouchers can be used for input VAT deduction?

Answer: For VAT general taxpayers purchasing domestic passenger transport services, the vouchers that can be used for input VAT deduction include: VAT special invoices, VAT electronic ordinary invoices, air transport electronic ticket itineraries indicating passenger identity information, railway tickets, and other tickets such as road and waterway tickets.

2.Our company is a general VAT taxpayer. For employees on business trips who obtain air transport electronic ticket itineraries, railway tickets, highway, waterway, and other passenger tickets that indicate passenger identity information, how should input VAT be calculated and deducted?

Answer: According to Article 6 of the Announcement on Policies Related to Deepening the VAT Reform (Ministry of Finance, State Taxation Administration, General Administration of Customs Announcement No. 39 of 2019): For domestic passenger transport services purchased by taxpayers, the input VAT amount is allowed to be deducted from the output VAT amount.

Among them

1. For a VAT electronic ordinary invoice obtained, the tax amount indicated on the invoice;

2. For obtaining an air transport electronic ticket itinerary showing passenger identity information, the input tax amount is calculated according to the following formula:

Input tax on air passenger transport = (fare + fuel surcharge) ÷ (1+9%) × 9%

3. For railway tickets obtained that state passenger identity information, the input VAT is calculated according to the following formula:

Input tax on railway passenger transport = face amount ÷ (1+9%) × 9%

4. For other passenger tickets such as road and waterway tickets bearing passenger identity information, the input tax amount shall be calculated according to the following formula:

Input tax on road, waterway, and other passenger transport = face amount ÷ (1+3%) × 3%

3.Our company is a general VAT taxpayer. It invites experts to train company employees and pays for their round-trip air tickets. Can the input VAT be deducted as passenger transport services?

Answer: No. According to the Announcement on Policies for Deepening the Reform of VAT (Ministry of Finance, State Taxation Administration, General Administration of Customs Announcement No. 39 of 2019), for VAT general taxpayers purchasing domestic passenger transport services, the input tax amount is allowed to be deducted from output tax. However, this refers to employees who have established a lawful employment relationship with the unit; the input tax on domestic passenger transport expenses incurred by them is allowed to be deducted. If a taxpayer pays passenger transport expenses for non-employees, they cannot be included in the deduction scope.

4.Can input VAT be deducted for long-distance passenger transport tear-off tickets obtained by an entity?

Answer: No. According to the Announcement on Policies for Deepening the Reform of VAT (Ministry of Finance, State Taxation Administration, General Administration of Customs Announcement No. 39 of 2019), for general taxpayers purchasing domestic passenger transport services, in addition to obtaining special VAT invoices and electronic ordinary VAT invoices, input tax may be deducted for air transport electronic passenger itineraries, railway tickets, and other tickets for highways, waterways, etc. that indicate passenger identity information; other tickets that do not indicate passenger identity information (handwritten ones are invalid) are temporarily not allowed as deduction vouchers. Therefore, taxpayers cannot deduct input tax based on long-distance passenger transport tear-off tickets.

5.When enterprise employees travel on business and obtain an electronic ticket itinerary, and the itinerary separately notes a change fee, can the change fee be used to calculate and deduct input VAT according to purchased passenger transport services?

Answer: The ticket change fee listed on the air transport electronic ticket itinerary receipt falls within the scope of all prices and out-of-price charges obtained by air transport enterprises for providing air transport services, and input tax may be calculated and deducted according to the relevant provisions of Article 6 of the Announcement on Policies Related to Deepening the VAT Reform (Ministry of Finance, State Taxation Administration, General Administration of Customs No. 39 of 2019).

6.Illustration of how to fill in the filing form for VAT deduction on passenger transport services

A certain enterprise is a general VAT taxpayer. In November 2023, it purchased domestic passenger transport services that are allowed to be deducted according to regulations. It obtained 1 VAT electronic ordinary invoice, amount 8,000 yuan, tax amount 720 yuan; 1 air transport electronic ticket itinerary showing passenger identity information, fare 2,000 yuan, fuel surcharge 120 yuan; 5 railway tickets showing passenger identity information, total face amount 1,000 yuan; 15 other passenger tickets such as road and water transport showing passenger identity information, total face amount 5,000 yuan; and 1,000 yuan in tear-off long-distance passenger transport tickets without passenger identity information. For this business, the VAT and Additional Tax Return Supplementary Information (II) (Current Period Input Tax Details) is completed as follows

Analysis:

1. Where an electronic ordinary VAT invoice is obtained, the deductible input tax is the tax amount stated on the invoice, i.e., 720 yuan;

2. For air transport electronic ticket itineraries that indicate passenger identity information, the input tax amount shall be calculated according to the following formula: Input tax on air passenger transport = (fare + fuel surcharge) ÷ (1+9%) × 9% = (2000+120) ÷ (1+9%) × 9% = 175 (yuan);

3. For railway tickets that indicate passenger identity information, the input tax amount is calculated according to the following formula: railway passenger transport input tax = face amount ÷ (1+9%) × 9% = 1000 ÷ (1+9%) × 9% = 82.56 (yuan);

4. For other passenger tickets such as road and water transport that indicate passenger identity information, the input tax amount shall be calculated according to the following formula: Input tax on other passenger transport such as road and water transport = ticket face amount ÷ (1+3%) × 3% = 5000 ÷ (1+3%) × 3% = 145.63 (yuan)

5. Tickets that do not indicate passenger identity information cannot be used to deduct input tax

6、 Total tax amount:

720+175+82.56+145.63=1123.19 (yuan)

Total amount (excluding tax): 8000 + (2000 + 120) ÷ (1 + 9%) + 1000 ÷ (1 + 9%) + 5000 ÷ (1 + 3%) = 15716.68 (yuan)

II. How to quickly and efficiently complete VAT deduction for passenger transport services

Kailing Technology Intelligent OCR recognition technologySupports batch recognition of multiple invoices and multiple types of documents; also supports one-time mixed recognition of multiple invoices and multiple types of documents, with automatic cutting and recognition by the system, and recognition of invoices at any angle.Recognition is efficient and accurate, with an average recognition time of less than 1 second and an actual application accuracy rate of over 95%; high fault tolerance, with recognition results unaffected by factors such as font changes, blur, brightness, and background, providing very high usability in complex environments; low equipment requirements, with no restrictions on image capture devices, including various models of mobile phones, computers, cameras, document cameras, and scanners.

Kailing Technology's "Lingshuitong" Smart Invoice Service Platform can automatically extract the required field information based on OCR recognition results, and automatically calculate deductible tax amounts, forming a passenger transport service deduction statistics table. There is no longer a need to manually input large amounts of invoice information and manually calculate deductible tax amounts. This not only greatly reduces manual operation time and error rates, but also improves the efficiency and accuracy of the entire process.

Kailing Technology's "Lingshuitong" platform, combined with Kailing's intelligent OCR recognition technology, makes financial workflows digital and automated, making work more convenient and efficient.

Beijing Kailing Technology Co., Ltd.——an enterprise business-finance-tax digitalization solution service provider.

Kailing Technology provides sales management systems, procurement management systems, output invoicing systems, input invoice collection systems, and imaging management systems according to enterprise needs（Smart OCR recognition technology）、financial posting systems, electronic accounting archives, fully digitalized Leqi interfaces and other business solutions, professionally and efficiently helping enterprises transform and upgrade their business-finance-tax digital management.

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