Loan interest cannot be deducted from value-added tax. The "Regulations on Matters Relevant to the Pilot Program of Replacing Business Tax with Value-Added Tax" clearly states that the payment to the lender by the taxpayer for accepting loan services is directly related to the loan. For investment and financing advisory fees, handling fees, consulting fees and other expenses, the input tax shall not be deducted from the output tax.

The "Implementation Measures for the Pilot Program of Replacing Business Tax with Value-Added Tax" also clearly stipulates that the input tax on the following items shall not be deducted from the output tax: purchased passenger transportation services, loan services, catering services, residents Daily services and entertainment services.

The so-called loan service is a business activity that lends funds to others to obtain interest income. Income from all kinds of occupation and borrowing of funds, as well as interest and interest-based income from bill discounting, financing sale and leaseback, re-lending and other businesses, all need to pay value-added tax in accordance with loan services.

If you pay handling fees, account management fees and other fees unrelated to loan services when opening a bank account, they are directly charged financial services. You can obtain a special VAT invoice and deduct the input tax according to regulations.