Why can’t hotels issue special VAT invoices?

Of course, special VAT invoices cannot be issued for hotel catering projects. However, special VAT invoices can be issued for accommodation, conferences, training, etc.

"Notice of the Ministry of Finance and the State Administration of Taxation on Comprehensively Launching the Pilot Program of Replacing Business Tax with Value-Added Tax" (Caishui [2016] No. 36): Attachment 2: "Provisions on Matters Related to the Pilot Program of Replacing Business Tax with Value-Added Tax"

5. When the original VAT general taxpayer purchases services, intangible assets or real estate, the input tax on the following items shall not be deducted from the output tax:

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(6) Purchased passenger transportation services, loan services, catering services, daily resident services and entertainment services.

(7) Other circumstances specified by the Ministry of Finance and the State Administration of Taxation.

The administrative measures classify taxpayers’ social and entertainment consumption as personal consumption, and sales of services to individual consumers cannot issue special VAT invoices. (This stipulates that if special VAT invoices can be issued for any personal catering consumption, both units and individuals can deduct input tax, and even units can use special VAT invoices obtained by individuals to deduct input tax. It’s all messed up. This is why it is stipulated that catering is not allowed to issue special VAT invoices).