china law
Lehmanlaw

Are all purchases VAT deductible?

Are all purchases VAT deductible?

No, not all are deductible. Some examples of those purchases VAT that are not deductible are purchase of fixed assets (see definition in VAT Implementing Rules), goods or taxable services for use in non-taxable projects or extraordinary losses (due to natural disaster, theft or poor management) of purchased goods.

 

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