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Taiwan tax dept issues refund guidance on VAT for foreigners   

Taiwan tax dept issues refund guidance on VAT for foreigners   

TAIPEI: Tax Authorities in Taiwan have released new guidance that confirms the arrangements in place for foreign persons to claim value-added tax (VAT) refunds on expenditure incurred when engaging in exhibitions or temporary business activities in China.

Authorities from Nantou county – Taiwan’s second largest province – said that under Article 7-1 of the Value-Added and Non-Value-Added Business Tax Act, foreign enterprises and institutions, organizations, or associations having no fixed place of business in China which purchase goods or services for the purpose of engaging in exhibitions or temporary business activities may qualify for a VAT refund on the aforesaid goods or services when meeting specific conditions.

Such an entity which purchases goods or services on which VAT is levied of TWD5,000 (USD156.3) or more within the period from January 1 to December 31 may claim for a refund of VAT during the period January 1 to June 30 in the next year.

The tax authority said additional information, including on the application process, can be found on the e-Tax Portal on the Taiwanese Ministry of Finance’s website or through the Exhibitors VAT Refund System on provincial tax authorities’ websites.