Core Viewpoint - The recent announcement by the Ministry of Finance and the State Taxation Administration has removed the ability for companies to use electronic ordinary invoices for domestic passenger transport services, such as those provided by Didi, to deduct input VAT, requiring them to obtain special VAT invoices instead [2][3]. Group 1: Impact on Companies - This change will affect companies with employees who frequently travel for business, as they will need to request special VAT invoices from transport service providers like Didi to claim VAT deductions [3]. - The adjustment is seen as a move to strengthen regulation and make the VAT deduction process for domestic passenger transport services more standardized [3]. Group 2: Expert Opinions - A senior tax expert believes that the impact of this change is minimal since transport service providers like Didi can still issue special VAT invoices for companies to use for deductions [4]. - The announcement retains other scenarios where companies can deduct VAT without needing special invoices, such as electronic tickets for rail and air travel, and tickets that include passenger identity information for road and water transport [4].

Core Viewpoint - The article provides guidance on how taxpayers can report and deduct input VAT for domestic passenger transportation services, including the use of special and electronic invoices [3][5][8]. Group 1: Reporting Input VAT - Taxpayers who purchase domestic passenger transportation services and obtain special VAT invoices can deduct the input VAT by filling out the corresponding section in the "VAT and Additional Tax Declaration Form" [3][4]. - For electronic ordinary VAT invoices, taxpayers should report them in the "other" section of the VAT declaration form [5][6]. - When obtaining electronic tickets for air or rail transport, taxpayers must also report these in the relevant sections of the VAT declaration form [8]. Group 2: Declaration Form Details - The declaration form includes specific sections for reporting certified VAT invoices and other supporting documents [4][6]. - The form requires details such as taxpayer name, invoice amounts, and the period for which the taxes are being reported [4][6]. - It is essential to categorize the invoices correctly to ensure proper deductions are made [4][8].