Two Authorities Clarify VAT Policies on Express Delivery Services

Recently, the Ministry of Finance (MOF) and the State Taxation Administration (STA) have jointly issued the Announcement on Clarifying Value-Added Tax Policies for Express Delivery Services and Other Matters (the "Announcement"), effective on the date of issuance.

According to the Announcement, income derived by express delivery enterprises from providing express delivery services shall be subject to value-added tax (VAT) under the "collection and delivery services" category. Express delivery services refer to business activities that, within an agreed time limit, complete the acceptance, sorting, transportation, and delivery of parcels, excluding activities where express delivery enterprises solely provide transportation services. The Announcement further states that taxpayers with qualifications for online platform-based road cargo transport ("online freight transport") operations, who procure finished oil, natural gas, electricity, hydrogen, dimethyl ether, methanol, or other types of vehicle fuels (energy), as well as pay road, bridge, and toll fees for use by actual carriers, may deduct the corresponding input VAT from their output VAT, provided the conditions set out in the Announcement are met.



(Source: http://szs.mof.gov.cn/zhengcefabu/202508/t20250812_3969840.htm)

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