The National Taxation Bureau of the Northern Area, Ministry of Finance (hereinafter referred to as “NTBNA”) indicated that in order to promote international trade and enhance international competitiveness, in accordance with Article 7-1 of the Value-Added and Non-Value-Added Business Tax Act (referred to as the Business Tax Act hereafter) established based on our country’s reciprocity principle, foreign enterprises, institutions, organizations, or associations (hereinafter referred to as “foreign business entities”) purchasing goods or services for the purpose of engaging in exhibitions or temporary business activities may claim for value-added business tax (hereinafter referred to as “VAT”) refund in accordance with “The Regulations Governing the Claiming of VAT Refunds for Goods and Services Eligible for VAT Purchased by Foreign Enterprises, Institutions, Organizations, or Associations Engaging in Exhibitions or Temporary Business Activities within the Territory of the ROC”.
       The NTBNA explains that the key points of this preferential measure are as follows:
1. Eligible Applicants:
(1) The foreign business entity has no fixed place of business within the territory of the ROC.
(2) The foreign business entity has a qualification of taxation registration or similar taxation registration approved by the competent authority in the country where the head office of the business entity is located.
    i. Where the foreign business entity is exempted from taxation registration or similar taxation registration in accordance with the tax law of the country where the head office of the business entity is located.
    ii. Where there is no business tax or similar taxes levied in the country where the head office of the business entity is located. Such foreign business entity shall have a certificate of registration or permit for establishment approved by the competent authority of the country.
(3) The country where the head office of the business entity is located provides reciprocal treatment or exempts similar taxes.
2. Requirements in claiming for a refund of VAT:
(1) A foreign business entity whose purchase of goods or services on which VAT is levied to a total of NT$5,000 or more from a business entity which computes its business tax liability under Section I of Chapter IV of the Business Tax Act within the territory of the ROC for the purpose of engaging in exhibitions or temporary business activities within one year from the date of the first entry, or the next day following the expiration of one year, or the date of re-entry. Furthermore, the calculation of “within the period of one year” shall start from the date of the first entry of the foreign business entity which participates in exhibitions or temporary business activities in the territory of the ROC. After the expiration of the one-year period, recalculation of the term shall start on the day following the expiration of the one-year period or the re-entry date.
(2) However, the foreign business entity could file other taxable documents in the same year within the time to apply for the VAT refund upon the approval of the competent tax authority for returning the business tax. The amount of the VAT refund applied is not subject to the certain amount of money.
3. The foreign business entity shall obtain and keep the following documentary evidence:
(1) Receipt copies of duplicate uniform invoices, cash register uniform invoices, or electronic uniform invoices.
(2) Receipts or stubs of tickets for taking trains, buses, high speed railway, vessels, or aircraft issued by transportation businesses.
(3) A table showing details of shared expenses with the amount of business tax contained therein and the related copies of original documentary evidence.
(4) Other documentary evidence specifying the amount of the VAT and approved by the Ministry of Finance.
4.Application deadline: The foreign business entity may apply to the competent tax authority for approval of the VAT refund within 18 months of the first entry date or start date of the recalculation term following the expiration of the one-year period.
5. The competent tax authorities for the acceptance of applications for VAT refunds are as follows:
(1) In the case that a foreign enterprise, institution, organization or association applies by itself or appoints a foreign agent to apply on its behalf, the National Taxation Bureau of Taipei, Ministry of Finance.
(2) In the case that a foreign enterprise, institution, organization or association appoints a local agent to apply on its behalf, the local competent tax authority where the agent is located.
       Lastly, the NTBNA stated that the foreign business entity can use the website of our eTax Portal, Ministry of Finance (https://www.etax.nat.gov.tw) to gain access to the “Exhibitor’s VAT Refund System” to reach the related tax refund guidelines and application forms. If you have further questions or concerns, please contact the NTBNA through our toll-free telephone number at 0800-000-321. The NTBNA shall always be at your service.

( Contact person for press release: Section Head  Wang of  Sales Tax Division Tel: (03) 3396789 ext. 1250 )