On August 3, 2016, MOF and SAT jointly issued Circular Cai Shui  No. 86, on calculating deductible input VAT on tolls, i.e., fees collected according to laws and regulations for using roads, bridges and floodgates.
A general VAT payer can deduct input VAT by applying the following formulas on toll receipts:
- Deductible input VAT on freeway tolls = toll amount on the receipt/(1 + 3%) x 3%
- Deductible input VAT on tolls paid for arterial highway, secondary highway, bridge and floodgate = toll amount on the receipt/(1 + 5%) x 5%