According to the National Taxation Bureau of the Northern District of the Ministry of Finance, many companies provide their own products to win prizes at the end of the New Year, or give their own products to customers. According to the value-added and non-value-added business tax law (hereinafter referred to as Article 3, Subparagraph 3, Subparagraph 1 of Article 3 of the Business Tax Law stipulates that a business operator shall use the goods it produces, imports, and purchases for sale for its own use; The transfer of another owner shall be regarded as a sale of goods.
The bureau further stated that the goods produced, imported or purchased by the business person were not determined to be used as rewards for employees or gifts for social entertainment at the time of purchase, and they were listed as purchase items, and the input tax paid at the time of purchase had been declared to offset the output tax If the goods are transferred to employees as rewards or entertainment gifts, they shall issue a unified invoice with themselves as the buyer according to the current price in accordance with Article 3, Item 3 of the Business Tax Law, and issue a unified invoice based on the business tax law. Article 19 of the Tax Law stipulates that the business operator shall truncate the corners of the invoice or affix a stamp to make it invalid after it is issued, and shall not declare the deduction of output tax; If the use of social entertainment gifts is listed in the relevant items of "compensation of employees" or "social expenses", and the input tax paid for the goods has not been reported to offset the output tax, the operation can be simplified. In addition to the account records that should be set up, Exemption from the sale of goods and the issuance of a unified invoice.
The Bureau gave an example. Company A within its jurisdiction is a distributor of home appliances. It purchased 1,000 electric heaters from Company B in October 2011 at a unit price of NT$4,800 per unit. Because the electric heaters are very popular and loved by employees, three of them were used as prizes in the employee lottery when handling the company's year-end banquet. Promptly use the unified invoice as the buyer to report and pay business tax, and list it in accordance with employee benefits or related subjects.
The bureau urges business operators to check on their own whether they should be regarded as sales of goods due to their negligence for a while, but those who fail to issue a unified invoice should automatically issue, make up a supplementary report and pay in accordance with the provisions of Article 48-1 of the Tax Collection Act. If you still have doubts about business tax regulations, you can call the toll-free service number 0800-000-321, and the bureau will provide services wholeheartedly.
Contact person for press release: Section Chief Xue of the Fourth Division of Review Contact number: (03) 3396789 ext. 1241
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