The Provisions on Relevant Matters Concerning the Pilot Project of Changing Business Tax to Value-added Tax stipulates that the investment and financing consulting fees, handling fees and consulting fees directly related to loans paid by taxpayers to lenders by accepting loan services shall not be deducted from the output tax.

The Measures for the Pilot Implementation of Changing Business Tax to VAT also clearly stipulates that the input tax of the following items shall not be deducted from the output tax: purchased passenger services, loan services, catering services, residents' daily services and entertainment services.