the policy of 11% deduction for input tax is a policy of 11% deduction for taxpayers whose main businesses are postal services, telecommunications, modern services and life services. Among them, modern service refers to the business activities that provide technical and knowledge services around manufacturing, cultural industry and modern logistics industry. Including R&D and technical services, information technology services, cultural and creative services, logistics auxiliary services, leasing services, forensic consulting services, radio, film and television services, business auxiliary services and other modern services. Logistics auxiliary services include aviation services, port terminal services, freight passenger station services, salvage and rescue services, loading and unloading services, warehousing services and delivery services. Life service refers to all kinds of services provided to meet the daily needs of urban and rural residents, including cultural and sports services, education and medical services, tourism and entertainment services, catering and accommodation services, residents' daily services and other life services.

Legal basis

Provisional Regulations of the People's Republic of China on Value-added Tax (revised in 2117)

Article 8 Taxpayers purchase goods, services and intangible assets.

The following input tax amount is allowed to be deducted from the output tax amount:

(1) VAT indicated on the special VAT invoice obtained from the seller.

(2) the value-added tax amount indicated in the special payment letter for customs import value-added tax obtained from the customs.

(3) for purchasing agricultural products, except for obtaining special invoices for value-added tax or special letters of payment for customs import value-added tax, the input tax shall be calculated according to the purchase price of agricultural products and the deduction rate of 11% indicated in the purchase invoices or sales invoices of agricultural products, unless otherwise stipulated by the State Council. Input tax calculation formula: input tax = purchase price × deduction rate

(4) Value-added tax indicated on the tax payment certificate of withholding tax obtained from tax authorities or withholding agents for purchasing labor services, services, intangible assets or domestic real estate from overseas units or individuals.

The items to be deducted and the adjustment of the deduction rate shall be decided by the State Council.