Taiwan VAT Refund Calculator
Frequently Asked Questions (FAQs) – Taiwan Tax Refund
A tax refund is the process of getting back excess Value Added Tax (VAT) paid on purchases after deducting the VAT collected from sales. If the VAT paid exceeds the VAT collected, a refund is issued.
Businesses that are VAT-registered and incur more VAT on taxable purchases than they collect on taxable sales are eligible to claim a VAT refund in Taiwan.
To apply for a VAT refund, businesses must file VAT returns with the Taiwanese tax authorities and submit relevant documents showing VAT payments and sales records.
VAT returns in Taiwan are typically filed on a bimonthly basis, though the frequency may vary depending on your business’s size and turnover.
The VAT refund process involves submitting a VAT return to the tax authorities, detailing the VAT paid on purchases and VAT collected from sales. If the VAT paid exceeds VAT collected, the difference will be refunded after review.
The time it takes to receive a VAT refund in Taiwan can vary, but it generally takes a few weeks to a couple of months, depending on the complexity of the case and the tax authority’s workload.
Yes, VAT refunds in Taiwan are generally available to VAT-registered businesses. However, only VAT paid on eligible business-related expenses can be refunded, and refunds are subject to the approval of the tax authorities.
No, VAT refunds in Taiwan are only available for businesses that are VAT-registered. Personal purchases are not eligible for a refund.
You will need your VAT return, invoices for purchases and sales, and proof of payment to apply for a VAT refund in Taiwan.
The VAT refund is calculated by comparing the VAT paid on purchases to the VAT collected from sales. If the VAT paid exceeds VAT collected, the difference will be refunded.
No, the VAT refund is not automatic. Businesses must file a VAT return and follow the appropriate procedures to claim the refund.
Yes, foreign businesses that are VAT-registered in Taiwan and incur VAT on taxable purchases can claim VAT refunds, subject to the same procedures as local businesses.
If you make an error in your VAT refund application, the tax authorities may require you to correct the mistake. In some cases, this could delay the refund process or result in penalties.
Not all purchases are eligible for VAT refunds. Only VAT on business-related purchases is refundable, and certain exempt goods or services may not qualify.
You can track your VAT refund status by logging into the Ministry of Finance’s online tax portal or by contacting the local tax authority where your VAT return was filed.
Taiwan Tax Refund for Tourists: A Complete Guide
If you’re planning to visit Taiwan and do some shopping, you’re in for a treat! Taiwan offers a Value-Added Tax (VAT) refund program for international tourists, allowing you to claim a 5% VAT refund on qualifying purchases made at participating stores. Here’s everything you need to know about how to claim this tax refund and make the most of your shopping experience.
Who’s Eligible for the VAT Refund?
To qualify for the VAT refund in Taiwan, you need to meet the following criteria:
- Tourist Status: You must be a foreign national entering Taiwan with a non-Taiwanese passport or other approved travel documents.
- Minimum Purchase: You need to spend at least NT$2,000 (inclusive of VAT) in a single store on the same day.
- Departure Timeline: You must carry the purchased goods out of Taiwan within 90 days of the purchase.
- Stay Duration: Your stay in Taiwan must not exceed 183 days.
How to Claim the VAT Refund
Step 1: At the Store
When you make a purchase at a participating store, ask the retailer for the VAT Refund Claim Form. You’ll need to show your passport and any necessary entry permits to complete the form. The store will attach the receipts, fill out the form, and have you sign it. Be sure to keep this form safe as you will need it later at the airport.
Step 2: At the Airport (Before Check-in)
To process your VAT refund, head to the airport at least three hours before your flight. At the airport, you can either visit a VAT Refund Counter or use an e-VAT kiosk to submit the following documents:
- Your completed Tax Refund Claim Form and receipts
- Your passport and entry permits
- The purchased goods
If necessary, the system may ask you to proceed to the customs counter for a quick inspection of your goods. Afterward, you can choose your preferred refund method:
- Cash: You can collect your refund at designated banks or cash counters in the airport.
- Credit Card: Refunds can be credited to your VISA, MasterCard, JCB, or UnionPay cards.
- Check: You can also receive a check, which can be cashed at a local bank.
Immediate VAT Refund for Small Purchases
For those making smaller purchases, some authorized stores offer immediate VAT refunds. If your total purchase amount is under NT$48,000 in a single store on the same day, or if your total purchases during your stay are below NT$120,000, you can get your VAT refund directly at the store, bypassing the airport process.
However, if your purchases exceed these amounts, you will need to claim your refund at the airport.
Important Notes to Keep in Mind
- Refund Fee: There is a 14% handling fee for cash refunds, so keep that in mind when planning your refund.
- Ineligible Items: Refunds are not available for services, meals, or duty-free goods.
- Proper Documentation: Make sure all forms and receipts are completed correctly and retained for your records.
- Time Management: Plan ahead and allow enough time at the airport to complete the refund process before your flight departs.
Final Thoughts
The Taiwan VAT refund program is an excellent way to save on your shopping while visiting the island. Just remember to keep track of your purchases, paperwork, and allow ample time at the airport for processing. With these simple steps, you can make the most of your shopping experience and get a little extra back before you leave! Happy shopping!