Restrictions on Deducting Input Tax for Purchased Passenger Cars and Reporting Business Tax Upon Sale

• Businesses cannot deduct the input tax paid for purchasing passenger cars for personal use from the output tax
• When selling the car, businesses must issue a unified invoice and pay business tax as required by law
• Passenger cars for personal use with less than 9 seats cannot have their input tax deducted from the output tax
• Failure to issue a unified invoice when selling a previously purchased passenger car can result in penalties and back taxes
• Businesses must be careful to issue a unified invoice and pay business tax when selling a passenger car, regardless of the selling price or input tax deductions made

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.

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