In accordance with the Implementation Measures for the Pilot Reform of Business Tax to VAT (2016) and the Notice on VAT Policies such as the Deduction of Input Tax on Leased Fixed Assets, Where a taxpayer purchases fixed assets, intangible assets (excluding other equity intangible assets), immovable property, or leased fixed assets, immovable property, both for the general method of tax calculation, but also for the simple method of tax calculation, VAT exemption items, collective welfare or personal consumption, the input VAT is allowed to be fully deducted from the output VAT.
The input VAT allowed to be fully deducted by the above policies and regulations refers to the input VAT obtained from the purchase of fixed assets, intangible assets (excluding other equity intangible assets), real estate, leased fixed assets and real estate, excluding the input VAT corresponding to various expenses paid after the purchase or rental of related assets, such as renovation fees, heating fees, property fees, maintenance fees and other expenses.