The VAT rate for accommodation fees is 6% for general taxpayers and 3% for small taxpayers.
The input tax deduction of accommodation expenses should be differentiated, and the following seven cases should not be deducted from the output tax:
One is that the accommodation expenses incurred in socializing and entertainment cannot be deducted from the input tax, such as the accommodation expenses incurred in receiving customers;
The accommodation expenses incurred in the outbound travel of employees belong to the category of welfare expenses, and the VAT burden cannot be deducted from the output tax;
The third is that the accommodation expenses incurred in individual travels belong to the category of welfare expenses.
Thirdly, accommodation expenses incurred by individuals belong to personal consumption, even if the invoice is issued in the name of the unit, it cannot be deducted from the output tax amount;
Fourthly, accommodation expenses incurred on business trips must be issued in the name of the unit, and those issued in the name of individuals or with incomplete name of the unit can not be deducted from the output tax amount;
Fifthly, those who choose to apply the simplified method of tax calculation such as the construction industry, for example, the construction company provides construction labor for the old project.
Fifthly, if the enterprise provides construction labor services for the old project and chooses to apply the simplified tax method, the lodging expenses incurred by the enterprise shall not be deducted from the input tax;
Sixthly, the lodging expenses incurred for the project exempted from VAT can not be offset;
Seventhly, the lodging expenses incurred prior to the change of the tax system shall not be deducted from the output tax, even if the VAT invoice has been obtained.
Legal Basis
"Measures for the Implementation of the Pilot Scheme for the Conversion of 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 for use in the taxable items of the simplified taxing method, the exempted items from value-added tax (VAT), the collective welfare, or personal consumption, Processing, repair and fitting services, services, intangible assets and real estate. The fixed assets, intangible assets and immovable properties involved only refer to the fixed assets and intangible assets used exclusively for the above items excluding other equity intangible assets and immovable properties. The taxpayer's consumption of social entertainment is personal consumption;
(ii) the purchased goods of abnormal loss, and the related processing, repairing, and mending labor services or transportation industry services;
(iii) the purchased goods consumed in the products in process and finished products of abnormal loss do not include fixed assets, processing, repairing, and mending labor services or transportation industry services;
(iv) the purchased goods of abnormal loss, and the related processing, repairing, and mending labor services or transportation industry services; and (v) Purchased goods, design services and construction services consumed in the construction work of the real estate that is abnormally lost;
(v) Purchased goods, design services and construction services consumed in the construction work of the real estate that is abnormally lost. The new construction, remodeling, expansion, repair and decoration of real estate by taxpayers are all real estate construction in progress.
(vi) Purchased passenger transportation services, loan services, catering services, residents' daily services and recreational services;
(vii) Other cases stipulated by the Ministry of Finance and the State Administration of Taxation.
The goods referred to in the fourth and fifth items of this Article refer to the materials and equipment constituting the real property entity, including building decoration materials and water supply and drainage, heating, sanitation, ventilation, lighting, communications, gas, fire protection, central air-conditioning, elevators, electrical, intelligent building equipment and ancillary facilities.