Can Companies Deduct Taxes When Purchasing New Energy Vehicles?
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No. Starting from January 1, 2009, while maintaining the current VAT rate unchanged, all VAT general taxpayers nationwide (regardless of region or industry) are allowed to deduct the input tax contained in their newly purchased equipment. Any uncredited input tax can be carried forward to the next period for continued deduction. More details are as follows: Reason: To prevent tax loopholes, consumer goods such as small cars, motorcycles, and yachts that are subject to consumption tax and are unrelated to corporate technological upgrades—and are easily confused with personal consumption—are excluded from the scope of the aforementioned equipment. Policy: As part of the supporting measures for the transition reform, the VAT exemption policy for imported equipment and the VAT refund policy for domestic equipment purchased by foreign-invested enterprises will be abolished accordingly. The tax rate for small-scale taxpayers will be uniformly reduced to 3%, and the VAT rate for mineral products will be restored to 17%.