- Overpaid VAT due to market price or exchange rate changes is now refundable in Taiwan.
- The Taiwan Ministry of Finance issued a ruling on 18 July 2025.
- Businesses can get refunds for overpaid VAT collected at import if it exceeds output VAT on domestic sales.
- The process is expedited by allowing the tax collection agency to handle cases directly.
- This change helps businesses affected by foreign exchange volatility.
- Example: A business imports goods worth USD 1,000, pays input VAT of NTD 1,600, but sells domestically at a lower rate, paying output VAT of NTD 1,500.
- Businesses can apply for a refund of the overpaid VAT to ease cash flow issues.
Source: taxathand.com
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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