Notice of the Ministry of Finance of State Taxation Administration of The People's Republic of China on Comprehensively Promoting the Pilot Project of Changing Business Tax to Value-added Tax (Caishui [2016] No.36): Appendix 2: Provisions on the Pilot Project of Changing Business Tax to Value-added Tax.

5. When the original VAT general taxpayer purchases labor services, intangible assets or real estate, the input tax amount of the following items shall not be deducted from the output tax amount:

………

(6) purchased passenger services, loan services, catering services, daily services for residents and entertainment services.

(seven) other circumstances stipulated by the Ministry of Finance of People's Republic of China (PRC) and State Taxation Administration of The People's Republic of China.

The Administrative Measures classify taxpayers' social and entertainment consumption as personal consumption, and cannot issue special VAT invoices for selling services to consumers. (If it is stipulated in this way, any individual catering consumption can avoid opening a special VAT ticket, and both units and individuals can deduct the input tax. Even the unit will use the special VAT ticket obtained by individuals to deduct the input tax, which is completely chaotic. This is why it is stipulated that catering cannot issue special VAT tickets. ).