National Taxation Bureau of Taipei, Ministry of Finance indicates that Regulations Governing VAT Refund Claims by Foreign Travelers Purchasing Goods Eligible for VAT Refund (hereinafter referred to as “the Regulations”) have significant amendment, which includes the increase of maximum amount of purchase eligible for in-store small-amount VAT refund and the extension of period for which authorized stores are exempt from using electronic invoices. Stores that intend to participate in the operation of VAT refund for foreign travelers purchasing goods should hurry up and seize the opportunity by contacting the private tax refund operator ( Chunghwa Telecom Enterprise Business Group, hereinafter, the CHT), with regard to the matter of singing a contract.
The Bureau indicates, to build up a quality environment of VAT refund for foreign travelers purchasing goods eligible, the Ministry of Transportation and Communication and the Ministry of Finance jointly revised and amended Article 3 and Article 4 of the Regulations on November 5, 2018, and put them in force from January 1, 2019. The details are as below:
1. Increase the maximum amount VAT inclusive purchase for in-store small-amount VAT refund
Pursuant to Article 3 of the Regulations, foreign travelers who enter the Republic of China(R.O.C.) on a non-R.O.C. passport and have stayed within R.O.C. territory for less than 183 days from the date of entry and spent above NT$2,000 and below NT$24,000 in one single day for merchandise at the same authorized store with the label of “in-store small-amount VAT refund” may apply for VAT refund to such authorized store. The implementation of the amended regulations from January 1, 2019 that increases the maximum amount of VAT inclusive purchase from NT$24,000 to NT$48,000 not only increases the purchase incentives to foreign travelers but saves time for foreign travelers to apply for VAT refund on VAT refund counter at the airport or seaport.
2. Extend the period for which authorized stores are exempt from using electronic invoices
Stores that intend to participate in the operation of VAT refund for foreign travelers purchasing goods eligible shall meet the requirements of not in arrears on payment of any confirmed payable VAT, profit-seeking enterprise income tax, and administrative fine, and shall use electronic invoices. However, according to regulations prescribed in Item 4, Article 4 of the Regulations, stores that have not used electronic invoices before December 31, 2018 may enter into a contract with CHT as authorized stores. To provide the convenience for foreign travelers to refund VAT for purchase, the foregoing provisions have been amended to extend the period for which authorized stores are exempt from using electronic invoices from December 31, 2018 to December 31, 2020. Stores that have not used electronic invoices but intend to participate in the operation of VAT refund for foreign travelers purchasing goods may contact CHT (Telephone: 0800-880-288) for matters regarding to entering into a contract before the aforesaid time period.
The Bureau reminds that stores who have been approved as authorized stores by the local tax competent authority of the place where they locate after entering into a contract with CHT need to use electronic invoices before the end of grace period, December 31, 2020. If the authorized store fails to duly adopt for the use of electronic invoices after January 1, 2021, in accordance with Article 4, Item 4 and Article 25 of the amended Regulations, its qualification of authorized store will be revoked by the local tax competent authority of the place where it locates.
(Contact person: Ms. Lai,Head of Fourth Examination Division. Telephone: 2311-3711