2016-03-18 16:20:36

The 2016 VAT audit is starting soon. Businesses should check for any mistakes to avoid any tax penalties. The National Taxation Bureau of Taipei has been using computer system to analyze any usual information to see if there are any tax evasions. The tax office audits businesses for fraudulent Government Uniform Invoices issued by businesses to help others avoid paying taxes. In addition, the followings are also the targets for tax office audit:

•  Businesses using fraudulent input invoices for tax deduction
•  GUIs were issued under the tax exempt or zero tax rate categories for taxable sales transactions.
•  Whether businesses in the category described in Chapter 4, Section 1 of Value-added and Non-value-added Business Tax Act declare VAT according to Article 36 of the above-mentioned Act. (Please refer to the above-mentioned tax law: http://law.moj.gov.tw/Eng/LawClass/LawAll.aspx?PCode=G0340080)
•  Businesses whose clientele is mostly tourists, businesses in the food and nightclub industries, cosmetic surgery clinics, post-natal care institutions, elderly care institutions who sell goods or services without business registrations, issuing GUI, paying VAT and obtaining Input Documentary Evidence.

The additional tax revue after tax audit in 2014 was 1.9 billion NTD. There is a "counseling period" before March 31. If businesses find out any mistakes they've made, please file for amendment and pay the unpaid tax ASAP before the tax office starts to audit. Otherwise, the fine can be up to five times the unpaid tax amount in addition to the interest.