Shall Sold House Has Been Registered for Transfer of Ownership, Regardless of Whether the Payment Has Been Received, the Uniform Invoice Shall be Issued
National Taxation Bureau of Taipei, Ministry of Finance (NTBT) expressed that, in case that the business entities omitted issuing the uniform invoice at the time of registration for transfer of ownership while they were selling the house, once it is found by the tax collection authority before the statutory filing deadline, in addition to back tax and penalties, those entities may be subject to order of suspension of business.
NTBT interpreted with examples that, while Company A was selling house, it omitted issuing the uniform invoice when it filed for registration for transfer of ownership to the purchaser on May 1st, 2016, the tax collection authority found such situation on June 9th, before the statutory filing deadline, July 15th, of the same year. According to the first part of Paragraph 1, Article 52 of The Value-added and Non-value-added Business Tax Act (VAT), a fine less than 5 times of the tax amount calculated based on the omitted selling amount and tax rate was imposed. Company A was dissatisfied with such penalty and filed a re-check. It claimed that it intended to issue the uniform invoice on the “loan appropriation date”(June 18th of the same year) and indeed issued the uniform invoice on that date to the purchaser; afterwards, it also combined that selling amount into the VAT return of that current period on July 15th (May and June of 2016). There was never a complement invoicing after such situation having been found by the tax collection authority and so on. However, it was investigated that such house had been registered for transfer of ownership on May 1st of the same year. Since the ownership of that real estate had been transferred, the action of selling goods was deemed to be accomplished, regardless of whether the payment has been received. Company A shall immediately issue the uniform invoice on the “transfer registration date”(May 1st of the same year); therefore, its claim was not accepted and the re-check was denied.
NTBT stressed that, when business entities sell goods or services, they shall pay attention to issuing the uniform invoices within the time limit specified in the “Time Limit for Issuing Sales Documentary Evidence.” In case that there is any omission, aside from being subjected to back tax and penalties, if such omission was found by the tax collection authority for 3 times in one year, the order of suspension of business which leads to the damage of business reputation could possibly be imposed. It will never be too careful on that affair.
(Contact: Ms. Chen, Auditor of First Legal Affairs Division; Tel: 2311-3711 ext. 1851)