Policy Interpretation‖Announcement on the Promotion of Fully Digitalized E-Invoices for Railway Passenger Transport

Original text:

Interpretation：

I. What is the background of the release of the Announcement?

The "Opinions on Further Deepening the Reform of Tax Administration" issued by the General Office of the CPC Central Committee and the General Office of the State Council in 2021 requires: orderly advance the electronicization of invoices in railways, civil aviation, and other fields. To implement the above requirements and promote the use of fully digitalized electronic invoices, the State Taxation Administration, the Ministry of Finance, and China State Railway Group jointly issued the "Announcement of the State Taxation Administration, the Ministry of Finance, and China State Railway Group Co., Ltd. on Promoting the Use of Fully Digitalized Electronic Invoices for Railway Passenger Transport" (No. 8 of 2024). The promotion of electronic invoices (railway electronic tickets) in the railway passenger transport field will reduce invoice usage costs, improve invoice management and usage efficiency, and meet the demand of passengers for convenient access to electronic invoices (railway electronic tickets).

II. What services regarding e-invoices (railway electronic tickets) do railway transport enterprises provide to passengers?

After the itinerary ends or payment of refund or change fees, passengers can log in to their railway 12306 account (including website and mobile client, the same below) within 180 days to truthfully obtain their own electronic invoice (railway electronic ticket); beyond 180 days, the agreement between the passenger and the railway transport enterprise applies. The railway transport enterprise truthfully issues the electronic invoice (railway electronic ticket) through railway 12306 and delivers it to the passenger via railway 12306 download or email. Passengers can query, download, and print the electronic invoice (railway electronic ticket) through railway 12306.

Currently, railway transport enterprises that handle domestic passenger transport ticketing, refunds, and rebooking through the railway ticket sales and reservation system provide the service of issuing e-invoices (railway e-tickets), but for related business such as non-real-name tickets, emergency paper tickets, and China Railway UnionPay Card/E-card pass tickets, the service of issuing e-invoices (railway e-tickets) is temporarily not provided.

III. After the promotion of electronic invoices (railway electronic tickets), can railway tickets (paper reimbursement vouchers) still be used for reimbursement, accounting, and tax deduction?

Passengers who need reimbursement and booking shall obtain an electronic invoice (railway electronic ticket). Where the purchaser is a general VAT taxpayer, for domestic railway passenger transport services purchased, the electronic invoice (railway electronic ticket) shall be used as the VAT deduction voucher, and the input VAT amount shall be determined in accordance with current regulations. The purchaser may log in to the electronic invoice service platform to query the VAT amount corresponding to the electronic invoice (railway electronic ticket) obtained for domestic railway passenger transport services purchased, and determine the input VAT amount accordingly.

To maintain a smooth transition, for railway tickets (paper reimbursement vouchers) issued through the railway ticket sales and reservation system with travel dates before September 30, 2025, passengers may still use the railway tickets (paper reimbursement vouchers) for reimbursement and booking, and purchasers may still determine input tax in accordance with the provisions of Article 6, Item 1, Point 3 of the "Announcement of the Ministry of Finance, State Taxation Administration, and General Administration of Customs on Policies for Deepening VAT Reform" (2019 No. 39).

IV. What services do tax authorities provide to taxpayers and passengers regarding e-invoices (railway e-tickets)?

Tax authorities transmit e-invoices (railway e-tickets) synchronously to buyers through the tax digital account of the e-invoice service platform (hereinafter referred to as the tax digital account). Buyers can use the tax digital account to query, verify, download, print, and confirm the use of e-invoices (railway e-tickets), and can also useNational VAT Invoice Verification Platform(https://inv-veri.chinatax.gov.cn) for verification. Passengers can query and download electronic invoices (railway electronic tickets) through the personal ticket folder in the Individual Income Tax APP.

V. After a VAT general taxpayer issues or obtains an electronic invoice (railway electronic passenger ticket), how should the VAT filing form be filled out?

The amount and tax amount of electronic invoices (railway electronic tickets) issued by a general VAT taxpayer shall be filled in Columns 3 to 4 "Other Invoices Issued" of the VAT and Additional Tax Filing Form Annex (I) (Current Period Sales Details).

For the input tax amount of electronic invoices (electronic railway tickets) claimed for deduction by a general taxpayer, when filing taxes, it shall be filled in the relevant columns of "VAT special invoices verified as compliant" in Appendix II of the VAT and Surcharge Tax Return (Details of Input Tax for the Current Period).

Where a general VAT taxpayer has already used an electronic invoice (railway electronic ticket) for VAT filing deduction, after the invoicer initiates the red-letter reversal process, the VAT amount listed in the corresponding Red-Letter Invoice Information Confirmation Form shall be filled in Column 20 "Input Tax Specified in the Red-Letter Special Invoice Information Form" of the VAT and Additional Tax Filing Form Annex (II) (Current Period Input Tax Details).

Six, How is the electronic invoice (railway electronic ticket) reimbursed and recorded?

If a taxpayer obtains an electronic invoice (railway electronic passenger ticket) for reimbursement and booking, it shall implement in accordance with the Notice of the Ministry of Finance and the National Archives Administration on Standardizing the Reimbursement, Booking, and Archiving of Electronic Accounting Vouchers (Cai Kuai [2020] No. 6), the Measures for the Management of Accounting Archives (Order No. 79 of the Ministry of Finance and the National Archives Administration), the Specifications for Accounting Informatization Work (Cai Kuai [2024] No. 11), the Basic Functions and Service Specifications of Accounting Software (Cai Kuai [2024] No. 12), and the Ministry of Finance's provisions on accounting data standards for electronic vouchers.

Source: Shanghai Tax

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