EXTRA VAT DEDUCTION FOR CONSUMER SERVICE COMPANIES
On October 8th the Ministry of Finance and the State Administration of Taxation announced an extra VAT deduction policy for taxpayers operating in consumer service sectors such as culture, sport, tourism, entertainment, health care, education, accommodation and catering.
According to announcement No. 87 issued jointly by the two bodies, from 1 October of this year to 31 December 2021, taxpayers with consumer services accounting for over 50% of their total sales will be allowed to apply an extra 15% deduction of input VAT.
The announcement specifies that this must be recorded as non-operating income in the income statement.