- Businesses must deduct input tax in the period they receive a refund from customs for defective imported goods returned for export.
- If imported goods are re-exported due to defects and customs refunds the business tax, it should be deducted in the period the refund is received.
- According to the Business Tax Law, tax refunds due to returned goods should be deducted in the period of occurrence.
- Businesses must fill out a customs refund declaration form and report it in the appropriate tax period.
- Example: Company A imported goods, paid tax, and later returned defective goods. They received a tax refund and must report it in the correct tax period.
- Failure to report the refund can result in penalties for false reporting.
- Businesses can self-report unreported refunds before investigations to avoid penalties, with interest on the unpaid tax.
- For inquiries, contact the free service number or visit the tax bureau’s website.
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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