STA Interpretation: Promoting Fully Digitalized Electronic Fapiao for Railway Passenger Transport

关于《国家税务总局 财政部 中国国家铁路集团有限公司关于铁路客运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, September 29, 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 China State Railway Group Co., Ltd. jointly issued the Announcement of the State Taxation Administration, the Ministry of Finance, and China State Railway Group Co., Ltd. on Promoting the Use of Fully Digitalized Electronic Fapiao for Railway Passenger Transport (Announcement No. 8 of 2024). The promotion of electronic fapiao (Railway Electronic Passenger Ticket) in the railway passenger transport sector will reduce fapiao usage costs, improve fapiao management and usage efficiency, and meet passengers' need for convenient access to electronic fapiao (Railway Electronic Passenger Ticket).

Q2: What services do railway transport enterprises provide to passengers regarding electronic fapiao (Railway Electronic Passenger Ticket)?

Answer: After completing a trip or paying for ticket refund or rebooking fees, passengers may log into their Railway 12306 account (including the website and mobile application, the same hereinafter) within 180 days to truthfully obtain their own electronic fapiao (Railway Electronic Passenger Ticket). For applications beyond 180 days, the arrangements agreed upon between the passenger and the railway transport enterprise shall apply. Railway transport enterprises truthfully issue electronic fapiao (Railway Electronic Passenger Ticket) through Railway 12306 and deliver them to passengers via download through Railway 12306 or by email or other means. Passengers may query, download, and print electronic fapiao (Railway Electronic Passenger Ticket) through Railway 12306.

Currently, railway transport enterprises provide electronic fapiao (Railway Electronic Passenger Ticket) issuance services for ticket sales, refunds, and rebooking transactions processed through the railway passenger ticket sales and reservation system for domestic passenger transport. However, electronic fapiao (Railway Electronic Passenger Ticket) issuance services are temporarily not available for transactions involving non-real-name tickets, emergency paper tickets, China Railway Yintong Card/E-Card tickets, and similar items.

Q3: After the promotion of electronic fapiao (Railway Electronic Passenger Ticket), can railway tickets (paper reimbursement vouchers) still be used for reimbursement, accounting, and tax deduction?

Answer: Passengers who need itineraries for reimbursement and accounting purposes shall obtain electronic fapiao (Railway Electronic Passenger Ticket). Where the purchaser is a general VAT taxpayer, input tax for the purchase of domestic railway passenger transport services shall be determined using the electronic fapiao (Railway Electronic Passenger Ticket) as the VAT deduction voucher, in accordance with current regulations. Purchasers may log into the Electronic Fapiao Service Platform to query the VAT tax amount corresponding to the electronic fapiao (Railway Electronic Passenger Ticket) obtained for domestic railway passenger transport services, and determine the input tax accordingly.

To ensure a smooth transition, for railway tickets (paper reimbursement vouchers) issued through the railway passenger ticket sales and reservation system with travel dates on or before September 30, 2025, passengers may continue to use such railway tickets (paper reimbursement vouchers) for reimbursement and accounting purposes, and purchasers may continue to determine input tax in accordance with Item 3 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).

Q4: What services do tax authorities provide to taxpayers and passengers regarding electronic fapiao (Railway Electronic Passenger Ticket)?

Answer: Tax authorities transmit electronic fapiao (Railway Electronic Passenger Ticket) 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 fapiao (Railway Electronic Passenger Ticket) 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 fapiao (Railway Electronic Passenger Ticket) through the Personal Ticket Folder in the Individual Income Tax APP.

Q5: After a general VAT taxpayer issues or obtains an electronic fapiao (Railway Electronic Passenger Ticket), how should the VAT return be completed?

Answer: The amount and tax on electronic fapiao (Railway Electronic Passenger Ticket) 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 fapiao (Railway Electronic Passenger Ticket) 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 fapiao (Railway Electronic Passenger Ticket) 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).

Q6: How should electronic fapiao (Railway Electronic Passenger Ticket) be used for reimbursement and accounting?

Answer: Where a taxpayer obtains an electronic fapiao (Railway Electronic Passenger Ticket) 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.