Notice of the Ministry of Finance of State Taxation Administration of The People's Republic of China on Comprehensively Pushing Forward the Pilot Project of Changing Business Tax to Value-added Tax (Caishui [2116] No.36): Annex 1 Implementation Measures of Changing Business Tax to Value-added Tax:

Article 27? The input tax of the following items shall not be deducted from the output tax:

(1) Goods purchased, processing, repair and replacement services, services, intangible assets and real estate used for simple tax calculation items, items exempted from value-added tax, collective welfare or personal consumption. The fixed assets, intangible assets and real estate involved only refer to the fixed assets, intangible assets (excluding other equity intangible assets) and real estate (the mixed fixed assets, intangible assets and real estate can be deducted).

the taxpayer's social consumption belongs to personal consumption.

(2) abnormal loss of purchased goods, and related processing, repair and repair services and transportation services.

(3) purchased goods (excluding fixed assets), processing, repair and replacement services and transportation services consumed by products in process and finished products with abnormal losses.

(4) Abnormal loss of real estate, and purchased goods, design services and construction services consumed by the real estate.

(5) The purchased goods, design services and construction services consumed by the real estate construction in progress with abnormal losses.

taxpayers' new construction, reconstruction, expansion, repair and decoration of real estate are all real estate projects under construction.

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

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