The purchase of bottled water for employees can be deducted by issuing a special VAT invoice. If the company puts drinking water in the office area and provides it to employees and visiting customers, it is a cost related to production and operation. If the company can obtain the special VAT invoice, it is allowed to deduct the input tax. Whether the input tax of purchasing business can be deducted depends on the purpose of the purchased goods or services.

Deduction requirements for special VAT invoices

When a taxpayer issues a VAT invoice, the amount excluding tax should be filled in the "Amount" column. Taxpayers cannot accurately convert the amount excluding tax when issuing VAT invoices. You can select the option of "Amount Including Tax" to fill in the income including tax, and the invoicing system will automatically convert it into the amount excluding tax. The column "Total Price and Tax" is automatically calculated by the system and cannot be modified manually. It should be equal to income including tax.