The National Taxation Bureau of Taipei, Ministry of Finance has stated that business entities should include the business tax when pricing taxable goods or services sold to consumers. The indicated price of the goods or services should already incorporate the business tax, and business entities shall issue uniform invoices for reporting and payment of the business tax in accordance with regulations.
The Bureau explains that recently, it has observed that some business entities, when selling goods or services, inform consumers that an additional 5% business tax will be charged for requesting a uniform invoice, citing that the pricing or labeling does not include the business tax. This misleading practice has led consumers to forgo requesting a uniform invoice.
The Bureau points out that in accordance with Paragraphs 2 and 3, Article 32, and Article 48-1 of the Value-added and Non-value-added Business Tax Act, business entities shall include the business tax in the pricing of taxable goods or services. When selling to non-business entities, the business entities should issue a uniform invoice based on the pricing. Failure to include the business tax as mandated by Paragraph 2, Article 32 of the Act, and failure to rectify the situation within the specified timeframe after receiving a notice, will result in a fine ranging from NT$1,500 to NT$15,000.
The Bureau provides an example to illustrate the situation. Company X displays taxable goods, Product A, in their store with a marked price of NT$10,000, which already includes the business tax. When Company X sells Product A to a non-business entity, they should issue a uniform invoice to the consumer with the indicated price of NT$10,000.
The Bureau urges business entities to issue uniform invoices in accordance with the law when selling taxable goods or services to consumers. They should not request additional payment as business tax from buyers under the pretext that the price does not include the tax. Such practices can lead to consumer disputes and violations of tax regulations, resulting in penalties. The Bureau also reminds consumers to proactively request uniform invoices during shopping to safeguard their rights and interests.
(Contact: Ms. Yang, Section Head of the Sales Tax Division; Tel: 886-2-2311-3711 ext. 1760)