- Used car dealers can calculate and report deductible input tax amounts when purchasing second-hand vehicles for resale from individuals
- In the absence of unified invoices with business tax amounts, dealers can use sales contracts, transfer documents, or personal trade data as input certificates
- Input tax amounts are calculated based on the purchase cost and the current tax rate (5%)
- Dealers must submit a detailed list of input certificates when filing tax returns
- Input tax amounts should be compared to output tax amounts for each vehicle sold, with the lower amount being deductible
- Failure to comply with regulations may result in penalties for used car dealers
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.
