The Guidelines for Claiming VAT Refunds for Goods and Services Eligible for VAT Purchased by Foreign Enterprises, Institutions, Organizations, or Associations Engaging in Exhibitions or Temporary Business Activities within the Territory of the ROC

A foreign enterprise, institution, organization or association without a fixed place of business within the territory of the ROC which purchases goods or services on which value-added business tax (hereunder referred to as “VAT”) is levied to a total of NT$5,000 or more within the Republic of China (hereunder referred to as “ROC”) for the purpose of engaging in exhibitions or temporary business activities may claim for a refund of VAT during the period within 18 months from the date on the first entry or one year later on another starting date.
1. Eligible Applicants
A foreign enterprise, institution, organization or association shall be eligible to claim for a refund of VAT if the following conditions are satisfied:
（1）The foreign enterprise, institution, organization or association has no fixed place of business within the territory of the ROC.
（2）The foreign enterprise, institution, organization or association has a qualification of taxation registration or similar taxation registration approved by the competent authority in the country where the head office of the enterprise, institution, organization or association is located. However, conformance to any one of the following circumstances is excluded:
i.Where the foreign enterprise, institution, organization or association is exempted from taxation registration or similar taxation registration in accordance with the tax law of the country where the head office of the enterprise, institution, organization or association is located.
ii.Where there is no business tax or similar taxes levied in the country where the head office of the enterprise, institution, organization or association is located. Such foreign enterprise, institution, organization or association shall have a certificate of registration or permit for establishment approved by the competent authority of the country.
（3）The country where the head office of the enterprise, institution, organization or association is located provides reciprocal treatment or exempts similar taxes.

2. Requirements in claiming for a refund of VAT
（1）A foreign enterprise, institution, organization or association whose purchase of goods or services on which VAT is levied to a total of NT$5,000 or more from a business entity which computes its business tax liability under Section I of Chapter IV of the Value-Added and Non-Value-Added Business Tax Act within the territory of the ROC for the purpose of engaging in exhibitions (meaning engagement in activities for the displaying or exhibiting of the goods or services of the principal and ancillary business of the foreign enterprise, institution, organization or association within the territory of the ROC in order to promote business) or temporary business activities (meaning engagement in business activities including business trips, manpower education, investigation of market conditions, performance of market research, purchasing of business-related goods, holding of or attendance at international conferences, generation of business, business interaction, holding of marketing seminars, and other such temporary business activities in relation to the business of the principal and ancillary businesses which are approved by the Ministry of Finance ＜hereunder referred to as “MOF”＞）within one year from the date of the first entry, or the next day following the expiration of one year, or the date of re-entry.
（2）Obtaining and keeping of the following documentary evidence within one year from the date of the first entry, or the next day following the expiration of one year, or the date of re-entry:
i.Receipt copies of duplicate uniform invoices, cash register uniform invoices, computer uniform invoices, or electronic uniform invoices.
ii.Receipts or stubs of tickets for taking trains, buses, high speed railway, vessels, aircraft issued by transportation businesses.
iii.A table showing details of shared expenses with the amount of business tax contained therein and the related copies of original documentary evidence.
iv.Other documentary evidence specifying the amount of the VAT and approved by the MOF.
（3）No VAT refund is applicable in the case of any of the following events associated with goods or services purchased:
i.Goods or services purchased are not for the use of the exhibition or temporary business activity.
ii.Goods or services purchased are not for the use of the principal or ancillary business operations.
iii.Goods or services are used for the purpose of public relations.
iv.Goods or services are used for rewarding individual employees.
v.Passenger cars are for personal use.
vi.The documentary evidence used in application for a claim for a refund of VAT in accordance with “The Regulations Regarding the Claiming of VAT Refunds by Foreign Passengers Purchasing Goods Eligible for VAT Refund” may not be used to claim for a refund of VAT in accordance with the Regulations herein.

3. The calculation of the amount of the VAT refund
（1）The amount of the VAT shall be computed by the following formula:
The amount of the VAT = Total amount of purchase receipts ÷ (1 + applicable tax rate) × applicable tax rate
（2）In the case that the last figure of the amount of the VAT on purchases is less than one dollar of circulating currency, the rounding-off system shall be used in the calculation.。

4. Application deadline
（1）The documentary evidence regarding exhibition or temporary business activities obtained within 18 months from the date of the first entry or starting date following the expiration of one year shall be compiled and submitte. If a foreign enterprise, institution, organization or association does not claim for a refund of VAT before the deadline, it is not allowed to claim after that day.
（2）In the case that an application for the VAT refund is submitted before the deadline in the preceding Paragraph, and subsequently, another application with other documentary evidence submitted after the aforesaid application within said deadline, the tax refund applied for is not subject to the limit of an amount of NT$5,000, and the date and amount of the VAT refund for which application was made before shall be specified in the later application. The total of the VAT refund is calculated according to the accumulated total amount of all of the applications. However, if a foreign enterprise, institution, organization or association does not claim for a refund of VAT before the deadline, it is not allowed to claim after that day.

5. Methods of application and the competent tax authority for the acceptance of applications
（1）Applying by itself: In the case of a foreign enterprise, institution, organization or association applying by itself for the VAT refund, the competent authority is the National Taxation Bureau of Taipei, MOF.
（2）Applying by agent: A foreign enterprise, institution, organization or association may appoint an agent to apply on its behalf for the VAT refund.
i.In the case that a foreign enterprise, institution, organization or association appoints a foreign agent to apply on its behalf, the competent authority is the National Taxation Bureau of Taipei, MOF.
ii.In the case that a foreign enterprise, institution, organization or association appoints a local agent to apply on its behalf, the local competent tax authority where the agent is located. The location referred to herein means the registered place of a professional practitioner (e.g., accountant, book-keeper, lawyer, etc.), or the registered principal office of a business entity, domicile or residential location for an individual.

6. Documents required for claiming for a refund of VAT
The foreign enterprise, institution, organization or association shall submit the following Chinese or English documents to the competent tax authority for claiming for a refund of VAT:
（1）The application form stipulated by the Ministry of Finance (please go on ＜www.etax.nat.gov.tw＞\ Menu \ Exhibitors, VAT Refund System\ Application to fill in the details and print out the application and relevant attachments).
（2）A certificate of qualification for taxation registration or similar taxation registration (effective for one year from the date of issuance) approved by the competent tax authority in the country where the head office of the enterprise, institution, organization or association is located. However, in the case that such enterprise, institution, organization or association is exempted from taxation registration or similar taxation registration in accordance with the tax law of the country in which its head office is located and there is no business tax or similar taxes levied in that country, it shall submit the certificate of registration or permission for establishment (effective for one year from the date of issuance) approved by the competent authority of the country.
（3）Documentation describing the sending of personnel to the ROC and their participation in the exhibition or temporary business activities, and arrival of the first batch of personnel.
（4）The original documentary evidence specified in Item 2 of these Guidelines. (Please assign numbers to the documents of the activities in the lower right corner of the documents by activity. For example: if there are two exhibitions within the territory of the ROC in the whole year, and where five documents are enclosed for the first exhibition ‘Activity No. 1’, the said documents shall be assigned the numbers 1-1, 1-2, 1-3, 1-4, 1-5 in the lower right corner in order and three documents are enclosed for the second exhibition ‘Activity No. 2’, the said documents shall be assigned the numbers 2-1, 2-2, 2-3 in the lower right corner in order. In addition, enter the details of the said documents in the documentary evidence column in Attachment 1 of the application.)
（5）A letter of attorney appointing the agent of the foreign enterprise, institution, organization or association authorized to act on its behalf and the identity certificate of the agent.

7. Methods of refund and currencies
The applicant may choose one of following methods to receive the tax refund and shall specify the method by which the tax refund is to be received in the application and appoint the applicant or its agent as beneficiary:
（1）VAT refund via remittance: The VAT refund made via remittance means the direct transfer of the refund to a deposit account appointed by the applicant or its agent (the scope of the authorization in terms of the amount payable to the agent shall be specified in the letter of attorney). In addition, in order to avoid mistakes in the processing of the remittance, please provide a photocopy of a passbook account or other document related to the said deposit account for reference). The said deposit account may be a deposit account in NT$ or foreign currency within the territory of the ROC or a deposit account in a financial institute outside the ROC.
i.Transfer of NT$ to a domestic account assigned by the foreign enterprise, institution, organization or association.
ii.For transfer of foreign currency to a domestic or foreign account assigned by the foreign enterprise, institution, organization or association, the tax refund shall be paid in foreign currency converted at the foreign exchange rate on the conversion date with a deduction for the amount of fees for exchange and remittance and other relevant expenses. In addition, the currency shall also be specified in the application. In the case that the currency is not a listed currency within the ROC, the amount paid shall be calculated in US dollars.
（2）VAT refunds via check: The check issued in payment of a VAT refund means an “account payee only” check in NT$ only payable to the applicant or its agent issued by the competent tax authority (the scope of the authorization in terms of the amount payable to the agent shall be specified in the letter of attorney). In addition, the applicant shall specify the receiving address in the application form.

8. Before the implementation of the provisions of the amended Directions for Claiming VAT Refunds for Goods and Services Eligible for VAT Purchased by Foreign Enterprises, Institutions, Organizations, or Associations Engaging in Exhibitions or Temporary Business Activities within the Territory of the ROC is enacted on September 21, 2018, a foreign enterprise, institution, organization or association having already arrived for the first time to the ROC may, at its discretion, choose provisions before or after the amendment for claiming the refunds of business tax.