Legal analysis: taxpayers in production and life service industries are allowed to deduct the input tax plus 10% to deduct the tax payable in the current period. Taxpayers should submit a statement to the competent tax authorities for the first time in the year that the policy of 10% is applicable. Taxpayers in the life service industry are allowed to deduct the taxable amount according to the deductible input tax plus 15%. When a taxpayer confirms the application of the 15% plus deduction policy for the first time within one year, it shall submit an explanation of the application of the 15% plus deduction policy to the competent tax authorities.

Legal basis: Announcement of State Taxation Administration of The People's Republic of China, People's Republic of China (PRC) on Deepening the Reform of Value-added Tax. Taxpayers in the production and life service industry who apply the additional deduction policy can apply for the additional deduction policy through the electronic tax bureau (or to the tax service office) when they first confirm the application of the additional deduction policy.