The list price set by a business entity that uses uniform invoices for goods or services shall be inclusive of the business tax, and the business entity shall take the initiative to issue uniform invoices to the purchaser.
National Taxation Bureau of Southern Area, Ministry of Finance (NTBSA) recently received feedback from the public, saying that some business entities that sell goods or services on the internet fail to include the business tax in the list price set for taxable goods or services. Instead, they ask purchasers to pay an additional 5% business tax after transactions are established. The NTBSA indicated that this kind of behavior has violated the Value-added and Non-value-added Business Tax Act (hereinafter “the Business Tax Act”). If a business entity is notified to make corrections within a specified time limit but fails to do so, it shall be penalized.
The NTBSA expressed that according to the Paragraph 2, Article 32 of the Business Tax Act, the list price set by a business entity for taxable goods or services shall be inclusive of the business tax. Hence, the list price marked on the product is a business tax inclusive price. If the purchaser is a business entity, the output tax and the sales amount shall be stated separately on the uniform invoice, and the total amount shall be the list price; if the purchaser is not a business entity, the uniform invoice shall be issued at the list price. If a business entity fails to include the business tax in the list price that it sets for taxable goods or services and is notified to make corrections within a specified time limit but fails to do so, it shall be fined an administrative fine of no less than NT$1,500 and no more than NT$15,000.
For example, for a product with a price of NT$500, when the purchaser is a business entity, a triplicate uniform invoice with a sales amount of NT$476 and business tax of NT$24 must be issued; when the purchaser is not a business entity, a duplicate uniform invoice with a total amount of NT$500 must be issued.
The NTBSA would like to remind business entities that charges should be consistent with the list price rather than asking purchasers for additional business tax, and they should honestly issue uniform invoices in accordance with the law to avoid penalty.
Press Release Contact: Ms. Hsu
Fourth Examination Division