The company can't issue a special VAT invoice of 17% if it buys a car and then sells it to employees. Only ordinary VAT invoices can be issued. The company is required to accrue VAT output tax at 17% of the selling price.

Article 10 of the Provisional Regulations of the People's Republic of China on Value Added Tax shall not be deducted from the output tax: (1) Goods purchased or taxable services used for non-VAT taxable items, VAT-exempt items, collective welfare or personal consumption.

Although some special invoices that have been issued have not been authenticated by the buyer, the buyer can also issue a notice, and the seller can re-invoice based on this. The Supplementary Notice of State Taxation Administration of The People's Republic of China on Amending the Provisions on the Use of Special VAT Invoices stipulates the following two situations:

(a) due to the special invoice deduction, invoice can not be authenticated.

(2) If the goods purchased by the buyer do not fall within the scope of VAT deduction, and the special invoices obtained are not authenticated, the buyer shall fill in the application form, fill in the specific reasons and the information of the corresponding special invoices in blue on the application form, and the competent tax authorities shall issue a notice after examination.

Baidu encyclopedia-special invoice for value-added tax