Two Departments Issue Notice Clarifying VAT Input Tax Deduction and Related Matters

The Ministry of Finance and the State Administration of Taxation issued a public notice clarifying rules for VAT input tax deduction on motor vehicles and domestic passenger transport services, as well as matters concerning asset restructuring and tax liability timing. Two additional regulations on VAT prepayment management and long-term asset input tax deduction were also released, effective January 1, 2026.