Notice of the State Administration of Taxation concerning the deduction of value-added tax

Notice of the State Administration of Taxation concerning the deduction of value-added tax from invoices of waste materials

               Notice of the State Administration of Taxation No. 1, 2008, 2008-12-31

In order to promote the recycling and utilization of renewable resources (waste materials) and standardize the development of waste materials recycling operation industry, Notice of the Ministry of Finance and the State Administration of Taxation on Value-added Tax Policy for Renewable Resources (Fiscal Tax [2008] No. 157) has adjusted the current value-added tax policy for waste materials recycling operation. The provision that general VAT taxpayers of production enterprises should use invokes of waste and used materials to offset VAT input tax was abolished. In order to do a good job in the transition and connection of relevant value-added tax policies, the relevant matters are hereby announced as follows:

I. Starting from January 1, 2009, general VAT taxpayers engaged in the business of recycling waste and used materials may not issue VAT special invoices with the words "waste and used materials" (hereinafter referred to as the special invoices of waste and used materials) when selling waste and used materials.

The special invoices for waste materials issued after January 1, 2009 obtained by taxpayers are no longer regarded as VAT deduction vouchers.

For the special invoics of waste and used materials issued before December 31, 2008 obtained by the taxpayer, the certification shall be handled within 90 days from the date of issuance, and the input VAT of the current period shall be declared and deducted in the month in which the certification is passed.

Since April 1, 2009, the special invoices for waste materials shall not be used as VAT deduction vouchers to calculate the deduction of input tax.

This is to announce.