[Hot Q&A] Hot Q&A on VAT for passenger transport services

The 2025 Spring Festival travel rush has already begun, and the transportation services sector has ushered in a peak. In this issue, we have compiled a Q&A on hot topics regarding VAT on passenger transport services. Take a look!

1. Can a VAT general taxpayer deduct input tax for domestic passenger transport services purchased?

Answer:Yes. Since April 1, 2019, for VAT general taxpayers purchasing domestic passenger transport services, the input tax amount is allowed to be deducted from the output tax amount.

2. Can a general VAT taxpayer deduct the input tax on international passenger transport services purchased?

Answer:No. Taxpayers providing international passenger transport services are subject to a zero VAT rate or exemption policy. Accordingly, purchasing international passenger transport services cannot be deducted as input VAT.

3. How is the input tax amount calculated when a general VAT taxpayer obtains an electronic VAT ordinary invoice for domestic passenger transport services?

Answer:Where a general VAT taxpayer purchases domestic passenger transport services and obtains a VAT electronic ordinary invoice, the input tax shall be the tax amount stated on the invoice.

4. How is the input tax amount calculated when a VAT general taxpayer purchases domestic passenger transport services and obtains an air transport e-ticket itinerary?

Answer:For air transport electronic ticket itineraries obtained that indicate passenger identity information, input VAT shall be calculated according to the following formula: air passenger transport input VAT = (fare + fuel surcharge) ÷ (1+9%) × 9%.

5. Due to the cancellation of an employee business trip, the company paid a ticket refund fee to an airline agency and obtained a special VAT invoice with a 6% tax rate. Can the company deduct this input tax amount?

Answer:According to current policy provisions, the ticket refund fee charged by an air agency company falls within the scope of taxation for modern services and shall be subject to VAT at the 6% rate. The ticket refund fee paid by the company for official business falls within the scope of deductible input tax, and the tax amount indicated on its special VAT invoice may be deducted from output tax.

Source: Shanghai Tax

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