Annex to the 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 VAT:
1. The Measures for the Pilot Implementation of Changing Business Tax to VAT (Caishui [2016] No.36) stipulates that the input tax amount of the following items shall not be deducted from the output tax amount:
(1) Goods purchased, processing, repair and replacement services, services, intangible assets and real estate used for simple taxable 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 dedicated to the above projects.
Taxpayers' social and entertainment consumption belongs to personal consumption.
(two) abnormal loss of purchased goods, and related processing, repair and replacement services and transportation services.
(3) Goods purchased (excluding fixed assets), processing and repair services and transportation services consumed by products in process and finished products with abnormal losses.
(four) the abnormal loss of real estate, as well as the commodity procurement, design services and construction services consumed by the real estate.
(5) Goods purchased, design services and construction services consumed by the real estate under construction with abnormal losses.
Taxpayers' newly built, rebuilt, expanded, repaired and renovated real estates are all real estate projects under construction.
(six) the purchase of passenger services, loan services, catering services, residents' daily services 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.
According to the above regulations, as long as the accommodation expenses incurred by the enterprise do not fall into the above circumstances, the input tax can be deducted.