- The South District National Tax Bureau of the Ministry of Finance in Taiwan has stated that when declaring the amount of VAT input tax, businesses should only use input certificates obtained from their own purchases of goods or services from external sources. Using input certificates from other businesses to declare the amount of offset tax will be considered as false reporting of input tax.
- For example, if Company A declares VAT using input certificates from Company B to offset the tax amount, resulting in a false reporting of input tax of 10,000 yuan, the tax bureau will not only collect the additional VAT amount of 10,000 yuan but also impose a penalty for the tax evasion.
- The bureau reminds businesses to carefully verify the accuracy of input certificates when declaring VAT to avoid being caught and penalized for tax evasion. If businesses have used input certificates from other businesses to declare offset tax, as long as they voluntarily correct the mistake and pay the tax amount and interest before being investigated by the tax authorities or designated investigators from the Ministry of Finance, they can avoid penalties.
Source: mof.gov.tw
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
