1. After the VAT reform, the catering industry cannot issue special VAT invoices, because catering cannot be deducted.

2. The

relevant collection laws and regulations stipulate that

the

Ministry of Finance and the State Administration of Taxation on comprehensively promoting the pilot project of replacing business tax with value-added tax (CS [2016] No. 36)

Annex 2: provisions on matters related to the pilot project of replacing business tax with value-added tax.

2. The relevant policies of the original VAT taxpayers [refer to the taxpayers who pay VAT in accordance with the Provisional Regulations of the People's Republic of China (Decree No. 538 of the State Council) (hereinafter referred to as the "Provisional Regulations on VAT")].

5. For the

purchase of services, intangible assets or immovable property by the original general VAT taxpayers, the input VAT of the following items shall not be deducted from the output VAT:

(6) the purchase of passenger transportation services, loan services, catering services, daily services for residents and entertainment services.