Interest arising from inter-enterprise loans or borrowings may be invoiced for special value-added tax. However, ordinary VAT invoices should be issued instead of special VAT invoices.

Because according to the provisions of the camp reform, the input tax of the purchased loan service shall not be deducted from the output tax, and the loan or borrowing between enterprises belongs to the loan service. Since the loan service cannot be deducted from the input tax, it is meaningless to issue a special VAT invoice.

Interest income from inter-enterprise loans is also an operating income of enterprises. According to the business tax value-added policy, the income party should issue VAT invoices to the payer according to the financial industry, and the applicable tax rate is 6% (general taxpayers), and the small-scale tax collection rate is 3%.