Erinome: Hello everyone! Welcome back to our podcast. Today, we have a very important topic. It's about tax rules for company expenses.
Enceladus: Yes, hello friends! Today we talk about a new rule for Didi taxi receipts and VAT. It's a bit confusing, but we will try to explain it simply.
Erinome: You know that? Many people use Didi for business trips. They get electronic invoices, called "piao". Before, companies could use these piao to reduce their VAT tax.
Enceladus: Wow, that's good for companies. So, the piao from Didi was like money saved on tax?
Erinome: Exactly! But, um, there is a big change coming. A new rule says from 2026, this will stop.
Enceladus: Oh no! Really? So after 2026, Didi electronic piao cannot be used for VAT deduction?
Erinome: That's what the news says. The rule number is 2026, No. 13. It removes the old rule from 2019.
Enceladus: Sad for companies. So, what should companies do now?
Erinome: Good question. First, they need to check their current piao. The old rule from 2019 is still okay for now. So, Didi piao can still be used if they are the right type.
Enceladus: What is the "right type"?
Erinome: The piao must be a VAT electronic ordinary invoice. And it must have the tax amount written on it clearly.
Enceladus: I see. So, if the piao says "tax amount: 10 yuan", then the company can deduct 10 yuan from their VAT tax?
Erinome: Yes, that's right. But there is a problem piao. Some piao are for "chongzhi", you know, adding money to the Didi account. Those piao say "no tax". They cannot be used.
Enceladus: Ah, so only the piao for the ride itself, with tax, is good.
Erinome: Correct. Also, the piao must have the company's name on it, not a person's name.
Enceladus: That makes sense. The company pays, so the piao should be for the company.
Erinome: Yes. And there is a special online platform. Companies must log in and choose these piao within 360 days to use them.
Enceladus: Wow, 360 days. That's a long time, but they must remember to do it.
Erinome: True. Now, let's talk about the big mistake people make.
Enceladus: What mistake?
Erinome: Many people think only a special VAT invoice, called "zhuanyong fapiao", can be used for tax deduction.
Enceladus: Haha, I thought that too! So, that's not true?
Erinome: No, it's a big mistake! There are many types of piao that can be used. For example, plane tickets, train tickets, bus tickets, and yes, Didi electronic piao.
Enceladus: Oh, wow. So many types. Can you list them?
Erinome: Okay. First, the special VAT invoice, of course. Second, a paper from customs for imported goods. Third, a piao for buying farm products.
Enceladus: Farm products? Like vegetables?
Erinome: Yes. Fourth, a tax payment paper for services from other countries. Fifth, a car sales invoice. Sixth, an electronic piao for road and bridge tolls.
Enceladus: And the seventh is for passenger transport, like Didi, planes, trains, right?
Erinome: Exactly! You got it. So, Didi piao is in the seventh group. But remember, after 2026, the rule changes for Didi electronic piao.
Enceladus: So, after 2026, companies cannot use Didi electronic piao anymore. What about plane tickets or train tickets?
Erinome: Good question. The news says the new rule only removes the part about "electronic ordinary invoice". So, for plane tickets, you still need the travel itinerary with passenger name. For trains, you need the ticket with name. The formulas for calculation are still there.
Enceladus: Formulas? That sounds difficult.
Erinome: Don't worry. For a plane ticket, you take the price and fuel fee, divide by 1.09, then multiply by 0.09. That gives you the tax amount you can deduct.
Enceladus: Um, okay. I need a calculator for that. But for Didi, it was easier because the tax amount was written on the piao.
Erinome: Yes, it was easier. That's why the change is big. Companies need to plan for 2026.
Enceladus: What should they do to plan?
Erinome: First, they should check all their Didi piao now. Make sure they are the right type and use them before 2026 if possible.
Enceladus: Okay. Second?
Erinome: Second, think about other ways for employee travel. Maybe use company cars more, or use other taxi services that give different piao? The news says companies need to adjust their travel service strategy.
Enceladus: Strategy, that's a big word. But I understand. Choose services that still give good piao for tax.
Erinome: Yes. Also, companies must be very careful about when they can use these piao.
Enceladus: What do you mean?
Erinome: Not all business travel piao can be used. For example, if the travel is for a project that uses simple tax calculation, you cannot use the piao.
Enceladus: Oh no, that's complicated.
Erinome: Another example: if you buy a plane ticket to entertain a client, that is for personal consumption. You cannot use that piao for tax deduction.
Enceladus: So, only travel for real business work, like a meeting or training, is okay?
