STA Interpretation: Promoting Fully Digitalized Electronic Fapiao for Civil Aviation Passenger Transport Services

关于《国家税务总局 财政部 中国民用航空局关于民航旅客运输服务推广使用全面数字化的电子发票的公告》的解读

Source (Chinese): STA Policy Database — 政策解读 (Tax Administration and Technology Development Division, November 6, 2024)

English translation: Independent translation. Not an official government translation.

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Q1: What is the background for issuing this Announcement?

Answer: The Opinions on Further Deepening Tax Collection and Administration Reform, issued by the General Offices of the CPC Central Committee and the State Council in 2021, requires the orderly advancement of fapiao digitalization in sectors such as railways and civil aviation. To implement this requirement and promote the use of fully digitalized electronic fapiao, the State Taxation Administration, the Ministry of Finance, and the Civil Aviation Administration of China jointly issued the Announcement of the State Taxation Administration, the Ministry of Finance, and the Civil Aviation Administration of China on Promoting the Use of Fully Digitalized Electronic Fapiao for Civil Aviation Passenger Transport Services (Announcement No. 9 of 2024). The promotion of electronic fapiao (Air Transport Electronic Passenger Ticket Itinerary) (hereinafter "electronic itinerary") for civil aviation passenger transport services will effectively reduce fapiao usage costs, improve fapiao management and usage efficiency, and meet passengers' need for convenient access to electronic itineraries.

Q2: How do air transport enterprises or agency enterprises issue and deliver electronic itineraries to passengers?

Answer: Within 180 days after all flights on the purchased ticket have been completed, passengers may apply for the issuance of an electronic itinerary through the official website, mobile application, or service hotline of the air transport enterprise or agency enterprise. The electronic itinerary does not cover additional services such as ticket refunds, seat selection, or excess baggage. For applications beyond 180 days, the arrangements agreed upon between the passenger and the air transport enterprise shall apply. Electronic itineraries are temporarily not available for international and Hong Kong/Macau/Taiwan air passenger transport services.

The air transport enterprise or agency enterprise shall truthfully issue the electronic itinerary based on the purchaser's name, unified social credit code, and itinerary information provided by the passenger, and deliver the electronic itinerary to the passenger via download from its official website or mobile application, or by email or other means.

Q3: What is the "insurance premium" listed on the electronic itinerary?

Answer: The insurance premium refers to the fee paid by the passenger to an insurance institution for purchasing electronic comprehensive aviation passenger insurance when purchasing domestic civil aviation passenger transport services. The total amount column on the electronic itinerary shows the total price of the electronic itinerary excluding the insurance premium.

Q4: After the promotion of electronic itineraries, can paper itineraries still be used for reimbursement, accounting, and tax deduction?

Answer: Passengers who need to use itineraries for reimbursement and accounting purposes shall obtain electronic itineraries or other fapiao in accordance with regulations. Where the purchaser is a general VAT taxpayer, input tax for the purchase of domestic civil aviation passenger transport services shall be determined based on the VAT amount stated on the electronic itinerary or the special VAT invoice.

To ensure a smooth transition, for paper Air Transport Electronic Passenger Ticket Itineraries (hereinafter "paper itineraries") with flight dates on or before September 30, 2025, passengers may continue to use such paper itineraries for reimbursement and accounting purposes, and purchasers may continue to determine input tax in accordance with Item 2 of Subparagraph 1 of Paragraph 6 of the Announcement of the Ministry of Finance, the State Taxation Administration, and the General Administration of Customs on Policies Related to Deepening VAT Reform (Announcement No. 39 of 2019).

Q5: What services do tax authorities provide to taxpayers and passengers regarding electronic itineraries?

Answer: Tax authorities transmit electronic itineraries to purchasers synchronously through the Electronic Fapiao Service Platform Tax Digital Account (hereinafter "Tax Digital Account"). Purchasers may query, verify, download, print, and confirm the designated use of electronic itineraries through the Tax Digital Account, and may also verify them through the National VAT Invoice Verification Platform (https://inv-veri.chinatax.gov.cn). Passengers may query and download electronic itineraries through the Personal Ticket Folder in the Individual Income Tax APP.

Q6: After a general VAT taxpayer issues or obtains an electronic itinerary, how should the VAT return be completed?

Answer: The amount and tax on electronic itineraries issued by a general taxpayer shall be entered in columns 3 to 4 ("Other fapiao issued") of the VAT and Surtax Return Supplementary Schedule (I) (Details of Current Period Sales).

The input tax on electronic itineraries claimed for deduction by a general taxpayer shall be entered in the "Authenticated and matched special VAT invoices" fields of the VAT and Surtax Return Supplementary Schedule (II) (Details of Current Period Input Tax) when filing the tax return.

Where a general taxpayer has already used an electronic itinerary for VAT return deduction and the issuer initiates a red-ink offset process, the VAT amount listed on the corresponding Red-Ink Invoice Information Confirmation Form shall be entered in Row 20 ("Input tax noted on red-ink special invoice information form") of the VAT and Surtax Return Supplementary Schedule (II) (Details of Current Period Input Tax).

Q7: How should electronic itineraries be used for reimbursement and accounting?

Answer: Where a taxpayer obtains an electronic itinerary for reimbursement and accounting purposes, the taxpayer shall comply with the Notice of the Ministry of Finance and the State Archives Administration on Standardizing Reimbursement, Accounting, and Archiving of Electronic Accounting Vouchers (Cai Kuai [2020] No. 6), the Measures for the Administration of Accounting Archives (MOF/State Archives Administration Order No. 79), the Work Specifications for Accounting Informatization (Cai Kuai [2024] No. 11), the Specifications for Basic Functions and Services of Accounting Software (Cai Kuai [2024] No. 12), and the MOF regulations on data standards for electronic voucher accounting.