Deductible input tax = net value of fixed assets, intangible assets and real estate /( 1+ applicable tax rate) × applicable tax rate.
The above-mentioned deductible input tax should obtain a legal and effective VAT deduction certificate.
In order to ensure that the tax that does not belong to the scope of deduction, or does not meet the provisions on the management of deduction vouchers, does not enter the deduction chain, "State Taxation Administration of The People's Republic of China on the release of < Interim Measures for Installment Deduction of Real Estate Input Tax > Announcement of "(State Taxation Administration of The People's Republic of China Announcement No.20 16/No.5) further clarifies the handling method of related input tax when the use of real estate changes, but it is different from the provisions of Caishui [2016] No.36, especially the calculation formula of deductible input tax.
Article 9 of Announcement No.20 15 of the State Administration of Taxation stipulates that if the use of real estate that is not deductible according to the regulations changes and is used to allow the deduction of input tax, the deductible input tax shall be calculated in the month following the change of use according to the following formula.
Deductible input tax = input tax indicated or calculated in the VAT deduction voucher × net real estate value rate.
The deductible input tax calculated in accordance with the provisions of this article shall obtain a valid VAT deduction certificate issued after May 20 16.
For the deductible input tax calculated according to the provisions of this article, 60% will be deducted from the output tax in the month following the change of use, and 40% will be deducted from the output tax in the 13 month following the change of use.