Beware of False Invoices: Consequences and Remedies for Businesses in Taiwan

• Businesses should be careful when purchasing goods or services to ensure that the unified invoice obtained is issued by the actual trading partner to avoid penalties
• If a business uses a unified invoice issued by a non-actual trading partner as an input certificate for reporting and offsetting tax, they may face penalties if caught by the tax authorities
• The tax authorities may impose penalties according to tax laws if businesses are found to have used false unified invoices
• The Kaohsiung National Taxation Bureau provided an example where a company was able to avoid penalties by proving the actual trading partner and paying the required taxes
• Businesses should verify the trading partner and the validity of the input certificate when purchasing goods or services to avoid using false invoices for tax purposes
• Taxpayers involved in violations may be exempt from penalties if they voluntarily report and pay the missing taxes to the tax authorities
• For inquiries or assistance, people can contact the tax bureau’s toll-free service number or visit their website for online assistance.

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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