|Domestic business entities purchasing electronic services from cross-border e-commerce business entities may not deduct|
The National Taxation Bureau of the Northern Area, Ministry of Finance (NTBNA) indicates that it has recently received questions from some consumers and business entities about the new tax levy system on cross-border e-commerce business merchants taking effect May 1, 2017, concerning whether a consumer purchasing electronic services from a cross-border e-commerce business entity may obtain the uniform invoice, and whether a business entity purchasing electronic services from a cross-border e-commerce business entity may deduct the input tax from the output tax.
The NTBNA interprets that a cross-border e-commerce business entity which sells electronic services to domestic individuals, if annual sales amount exceeds NT$480,000, shall apply for taxation registration in the Republic of China, effective May 1, 2017. A cross-border e-commerce business entity who collects full price payment from domestic individuals shall declare and pay tax pursuant to Article 35 of the Business Tax Law, and the business entity may be exempted from the issuance of uniform invoices from May 1, 2017 to December 31, 2018. When a domestic business entity purchases electronic services from a cross-border e-commerce business platform, it shall declare and pay tax pursuant to Article 36.1 of the Business Tax Law.
The Bureau further emphasizes that the Bureau’s website has since launched the cross-border e-commerce business merchants’ business tax dedicated area offering E(e?)-station services, which not only provides cross-border e-commerce business entities with a simple tax ID registration, declaration and remittance of the business tax, and offering relevant legal and regulatory stipulations, but also offers inquiring(information?) for those cross-border e-commerce business entities registry having already filed for the tax ID registration.
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