Sales by Offset: Issuing Invoices for Business Tax Payment

• Businesses can use goods to offset debts, which is considered as sales and requires issuing an invoice for business tax payment
• Taxpayers often inquire if they need to issue an invoice for business tax when using goods to offset debts
• According to the Value-Added and Non-Value-Added Business Tax Law, transferring ownership of goods to others in exchange for payment is considered a sale
• Businesses must issue an invoice based on the market value when transferring ownership of goods to offset debts
• Example: A company used home appliances worth 2 million NT dollars to offset a debt to a renovation company and had to issue an invoice when delivering the goods
• Businesses should report any sales of goods using goods to offset debts to avoid penalties, and can seek assistance from tax authorities for any inquiries or assistance in reporting and paying taxes.

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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