Nanjing Qixia uses a big-data risk model to catch improper VAT input deductions

The Qixia District Tax Bureau in Nanjing targeted a familiar problem: firms mixing general and simplified-taxation costs and failing to transfer input tax that should not be deducted. In January it built a risk model on tax big data, combining invoice, filing, project registration, input selection and sales structure data with eight warning indicators around simplified-tax sales share, deduction scale, transfer ratio and refund linkage, so the system scans and locates problems on its own. It has scanned 1,321 companies this year and flagged 56. Verification runs two ways: reverse tracing of invoices for costs dedicated to simplified-taxation projects, and proportional allocation of shared costs such as rent, utilities and property fees. Nine firms have corrected filings so far, removing 8.3674 million yuan of ineligible input tax and recovering 1.5212 million yuan in refunds.