Ruling clarifies deductibility of input VAT on certain leased passenger cars

Taiwan’s Ministry of Finance issued VAT ruling no. 11004648950 on 7 January 2022 clarifying the deductibility of input VAT when a business entity leases passenger cars with less than nine seats.

In accordance with article 19 of the Taiwan Value-added and Non value-added Business Tax Act, if a business entity leases a passenger car with less than nine seats for personal use, the following situations will be considered an installment purchase and the relevant input VAT will not be deductible against the output VAT:

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Source Deloitte

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