August 13, China’s Ministry of Finance (MOF) and the State Taxation Administration (STA) jointly issued the Announcement on Clarifying VAT Policies for Express Delivery Services and Other Matters (hereinafter referred to as the "Announcement"), which explicitly states that taxpayers engaged in network platform road freight transportation can claim tax deductions for hydrogen fuel usage.

Key Provisions of the Announcement

Taxpayers with operational qualifications for network platform road freight transportation who engage in such operations are eligible to deduct input VAT from output VAT under the following conditions:

Fuel and Toll Usage: Self-purchased vehicle fuels (including refined oil, natural gas, electricity, hydrogen, dimethyl ether, methanol, and other energy sources) and road/bridge/toll fees paid must be directly used for transportation services entrusted to actual carriers by the network platform road freight transportation taxpayer.

Compliant Documentation: The VAT deduction vouchers obtained must conform to current regulations.

Effective Date and Retroactivity

The Announcement shall come into force from the date of promulgation. For matters that occurred before the Announcement but remain unresolved, they shall be handled in accordance with this Announcement. Matters already resolved shall not be adjusted retroactively.

Source:China Hydrogen Alliance