The Kaohsiung National Tax Bureau of the Ministry of Finance states that profit-making organizations, when establishing branch offices or storefronts in various locations, should first complete their tax registration and then begin operations after receiving unified invoices. They should not take shortcuts by borrowing unified invoices received by the main organization, which could result in penalties for the main organization.
The bureau further explains that before profit-making branch offices complete their tax registration, they may issue unified invoices received by the main organization to customers during sales. The main organization then reports the sales amount and pays business taxes. Afterward, when the branch office has completed its tax registration and the main organization consolidates the sales amount and the required business tax amount, even if there is no substantial tax evasion, the branch office will not be penalized according to Article 45 of the Value-Added and Non-Value-Added Business Tax Act (hereinafter referred to as the Business Tax Act) for failing to apply for tax registration as required, Article 51, Paragraph 1, Item 1 for unauthorized business operation leading to tax evasion, and Article 44 of the Tax Collection and Administration Act for violating the issuance of certificates. However, if the main organization lends its received unified invoices to branch offices, it should still be penalized according to Article 47, Paragraph 2 of the Business Tax Act, which regulates the transfer of unified invoices for use by others.
The bureau provides an example: Company A’s main organization is located in Taipei, and it operates an A store in Kaohsiung. However, the tax registration for the A store is still pending. To take a shortcut, the A store uses the unified invoices received by the main organization when making sales to consumers. The main organization reports the sales amount and pays business taxes. Later, when the A store has completed its tax registration and applies to have its sales amount and business tax amount consolidated by the main organization, if the main organization’s issuance of unified invoices to the A store is discovered by the National Tax Bureau, it should still be penalized according to Article 47, Paragraph 2 of the Business Tax Act, with a fine ranging from NT$3,000 to NT$30,000.
The bureau specifically reminds business operators that if they unintentionally transfer unified invoices for use by others and, before being reported or investigated by the tax authorities, voluntarily report the actual usage to the tax authorities, they can avoid penalties. If the public has any questions, they can call the toll-free service hotline at 0800-000-321 for inquiries or visit the bureau’s website (https://www.ntbk.gov.tw) to use the National Tax Smart Assistant for online inquiries.
Source: mof.gov.tw
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