Generally speaking, if the purchased car is completely used for business purposes of the company, it is usually deductible.

according to article 2 of annex 2 of the notice on bringing railway transportation and postal services into the pilot project of changing business tax into value-added tax (Cai Shui [213] No.16), the provisions on relevant matters in the pilot project of changing business tax into value-added tax, Relevant policies of the original VAT taxpayer [referring to taxpayers who pay VAT in accordance with the Provisional Regulations of the People's Republic of China on VAT (hereinafter referred to as the Provisional Regulations on VAT)]

1. The input tax of motorcycles, cars and yachts subject to consumption tax for the personal use of the original VAT general taxpayer is allowed to be deducted from the output tax.

2. The original VAT general taxpayer accepts taxable services provided by the pilot taxpayers. The input tax of the following items shall not be deducted from the output tax:

(1) Taxable items for simple taxation method, non-VAT taxable items, VAT-exempt items, collective welfare or personal consumption, and the patented technology, non-patented technology, goodwill, trademark, copyright and tangible movable property lease involved only refer to the patented technology, non-patented technology, goodwill, trademark, copyright and tangible movable property lease dedicated to the above items.

The above-mentioned non-VAT taxable items refer to the non-VAT taxable items mentioned in Article 1 of the Provisional Regulations on VAT, but do not include the items listed in the Notes on Taxable Service Scope.

according to the above provisions, the input tax on the purchase of cars for personal use by enterprises can be deducted. However, it is not applicable to simple taxation methods, non-VAT taxable items, VAT-exempt items, collective welfare or personal consumption.

if a motor vehicle retail enterprise sells motor vehicles to general VAT taxpayers, the column of "ID number/organization code" of the unified invoice for motor vehicle sales shall be filled with the taxpayer identification number of the buyer. The uniform invoice for motor vehicle sales needs to be certified before it can be deducted.

Extended information:

Determination of the recorded value and depreciation of the car:

1. The car purchased by the company is justified, and its input can be deducted within the deductible range of input tax.

2. Vehicle purchase tax is a one-time tax paid by the buyer, which is a part of the purchase cost of the two vehicles. Other items that should be included in the book value of fixed assets vehicles include purchase price, registration fee and other decoration fees.

3. Insurance premium, whether it is comprehensive insurance or compulsory insurance, is not the purchase cost of the vehicle, but the normal expenditure during the use of the vehicle.

4. Travel tax and stamp duty are generally included in taxes and surcharges.

under the condition of confirming that the recorded value of automobiles is correct, it is suggested to carry out depreciation and amortization according to the amortization period stipulated in the tax law to avoid tax differences. Relevant depreciation expenses can be included in the profit and loss account according to the purpose of the car.

Borrowing: manufacturing expenses/management expenses-depreciation expenses

Lending: accumulated depreciation

State Taxation Administration of The People's Republic of China —— Notice on bringing railway transportation and postal services into the pilot of changing business tax into value-added tax.