2. The second case: purchased goods, processing, repair and replacement services, labor services, intangible assets and real estate used for simple tax items. The simple tax calculation method refers to the general taxpayer who has a specific taxable behavior stipulated by the Ministry of Finance of People's Republic of China (PRC) and State Taxation Administration of The People's Republic of China, and can choose to apply the simple tax calculation method for tax calculation. For ordinary taxpayers who apply the simple tax method, the input tax of the simple tax method tax items shall not be deducted. For example, general taxpayers of real estate development enterprises sell self-developed old real estate projects, and general taxpayers provide construction services for old construction projects.
3. The third case: purchased goods, processing, repair and replacement services, services, intangible assets and real estate used for tax-free items. Exemption from VAT refers to the items exempted from VAT stipulated by the Ministry of Finance of People's Republic of China (PRC) and State Taxation Administration of The People's Republic of China. Such as: pension services provided by pension institutions, marriage introduction services, educational services provided by schools engaged in academic education, and self-produced agricultural products sold by agricultural producers.
4. The fourth situation: goods purchased, processing, repair and replacement services, labor services, intangible assets and real estate used for collective welfare. Collective welfare refers to the expenses incurred by various internal welfare departments provided by taxpayers, including the equipment, facilities and maintenance expenses of collective welfare departments such as staff canteen, staff bathroom, barber shop, infirmary, nursery and sanatorium.
5. The fifth case: purchased goods, processing and repair services, services, intangible assets and real estate for personal consumption. Personal consumption refers to the expenditure of goods, services and services consumed by taxpayers' employees. Such as: social entertainment consumption, employee personal vehicle refueling costs, etc. Taxpayers' social and entertainment consumption belongs to personal consumption. The fixed assets, intangible assets and real estate involved in the second to fifth cases mentioned above only refer to the fixed assets, intangible assets (excluding other intangible assets of equity) and real estate dedicated to the above projects. If the input tax amount obtained by taxpayers is used not only for normal VAT payment items, but also for simple taxation items, VAT exemption items, collective welfare or personal consumption, the input tax amount can be deducted.
6. The sixth situation: abnormal loss of purchased goods, and related processing, repair and replacement services and transportation services. The abnormal loss of purchased goods refers to the theft, loss, mildew and deterioration of goods due to poor management, and the confiscation, destruction and demolition of goods due to illegal activities. The input tax corresponding to goods and related processing, repair and replacement services and transportation services shall not be deducted.
7. The seventh case: purchased goods (excluding fixed assets), processing, repair and replacement services and transportation services consumed by products in process and finished products with abnormal losses. The purchased goods, processing, repair and replacement services and transportation services consumed by products and finished products with abnormal losses refer to the theft, loss, mildew and deterioration of products and finished products caused by poor management, and the confiscation, destruction and dismantling of products and finished products caused by violations of laws and regulations. The input tax corresponding to purchased goods, processing, repair and replacement services and transportation services consumed by products and finished products shall not be deducted.
8. Eighth situation: abnormal loss of real estate, and purchased goods, design services and construction services consumed by the real estate. Abnormal loss of real estate refers to the theft, loss, mildew and deterioration of real estate due to poor management, and the confiscation, destruction and demolition of real estate due to violation of laws and regulations. The input tax corresponding to the real estate and its purchased goods, design services and construction services shall not be deducted. The above goods refer to materials and equipment that constitute real estate entities, including building decoration materials and water supply and drainage, heating, sanitation, ventilation, lighting, communication, gas, fire protection, central air conditioning, elevators, electrical and intelligent building equipment and supporting facilities.
9. Ninth case: purchased goods, design services and construction services consumed by real estate projects under construction with abnormal losses. Taxpayers' newly built, rebuilt, expanded, repaired and renovated real estates are all real estate projects under construction. The purchased goods, design services and construction services consumed by abnormal losses of real estate construction in progress refer to the theft, loss, mildew and deterioration of real estate construction in progress due to poor management, and the confiscation, destruction and demolition of real estate construction in progress due to violations of laws and regulations. Input tax corresponding to purchased goods, design services and construction services consumed by real estate under construction shall not be deducted. The goods referred to refer to the materials and equipment that constitute the real estate entity, including building decoration materials and water supply and drainage, heating, sanitation, ventilation, lighting, communication, gas, fire protection, central air conditioning, elevators, electrical and intelligent building equipment and supporting facilities.
10, the tenth case: buying passenger service. Passenger transport services refer to passenger transport services, including services provided for individual passengers through land transport, water transport and air transport. The input tax of passenger service obtained by taxpayers shall not be deducted.
1 1. Eleventh situation: purchase loan service. Loan service refers to the business activities of lending funds to others to obtain interest income. Such as: loan services provided by banks, interest income during the holding period of financial products, interest income from credit card overdraft, interest income from buying financial products for resale, interest income from margin financing and securities lending, interest and interest income from financing businesses such as leaseback, bill negotiation, penalty interest, bill discount and lending. The input tax on loan services obtained by taxpayers shall not be deducted.
12, the twelfth situation: buying catering service. Catering service refers to the business activities of providing catering services to consumers by providing catering and catering places at the same time, and the input tax of catering services obtained by taxpayers shall not be deducted.
13, 13th case: purchasing daily services for residents. Residents' daily services refer to the services mainly provided to meet the daily needs of residents and their families, including municipal affairs, housekeeping, wedding, pension, funeral, nursing, relief, beauty salon, massage, sauna, oxygen bar, pedicure, bathing, dyeing, photography, printing and so on. The input tax of residents' daily services obtained by taxpayers shall not be deducted.
14, 14th situation: entertainment service was purchased. Entertainment service refers to the business of providing places and services for entertainment activities. Specifically, it includes: karaoke bars, dance halls, nightclubs, bars, billiards, golf, bowling and entertainment (including shooting, hunting, horse racing, game machines, bungee jumping, karting, hot air balloons, paramotors, archery and darts). The input tax on entertainment services obtained by taxpayers shall not be deducted.