New VAT Refunds Guidelines for Foreign Travelers
National Taxation Bureau of Taipei, Ministry of Finance (hereinafter referred to as “NTBT”) indicates that foreign travelers, who enter Republic of China (R.O.C.) with foreign passports and stay for no more than 183 days from the date of arrival, and who have made accumulated purchases of NT$2,000 or more in one single day at any authorized retail store, which has been approved to display the “Tax Refund Shopping(TRS)” label for selling eligible goods and processing value-added tax(VAT) refunds, are eligible to apply for VAT refunds on those purchases, if they depart from R.O.C. with the goods within 90 days following the date of purchase. Travelers may choose any of the following three methods to claim the VAT refunds:
The tax refund service at the airport/seaport terminals: travelers can either use the “e-VAT refund machine” or visit the VAT refunds service counter set up by the private tax refund operator at the airport or seaport to claim the VAT refunds prior to check-in.
Authorized TRS-labeled stores. Travelers may use the on-site small-amount service VAT refunds service at the stores that display the “We offer small-amount VAT refunds service” label, if the following conditions are met: (1)the accumulated amount of goods purchased is NT$24,000 or less on the same day from the same authorized store; (2)the total purchase amount does not exceed NT$120,000 during the current stay in R.O.C; (3)and the total purchase amount does not exceed NT$240,000 in one calendar year.
Authorized (designated) VAT refunds service counters located in Taipei city. Foreign travelers planning to claim their refunds at authorized (designated) VAT refunds service counters must provide a valid credit card (a security deposit at 7% of the purchase amount will be charged in advance), and depart with the refund-eligible goods within 20 days from the date the tax refund is claimed. At departure, traveler must visit the e-VAT refund machine or VAT refunds service counter at the airport or seaport for possible verification by customs. Failure to comply with the above procedures will cause the security deposit non-refundable.
NTBT further indicates that, commencing from May 1st, 2016, the operation of electronic VAT refunds services for foreign travelers is designated to Chunghwa Telecom Enterprise Business Group, and 14% administration fee will be charged by the operator. For more details, please visit the tax refund website: http://www.taxrefund.net.tw, or dial the toll-free service hotline: 0800-880-288.
(Contact: Ms. Shen, Section Head of the Fourth Examination Division;Tel: 2311-3711 Ext. 2510)