Taiwan MOF Clarifies Input VAT Deduction Rules on Fixed Assets for Operators of Mixed Businesses

The Taiwanese Ministry of Finance Feb. 13 clarified input VAT deductions on fixed assets for mixed-business operators selling taxable and tax-exempt goods or services. The clarification includes that: 1) if the proportional deduction method was used, input VAT on acquisitions of fixed assets is calculated based on the Regulations Governing the Calculation of Business Tax for Concurrent Business Entities, and full VAT deduction or refund isn’t possible; 2) the direct deduction method is based on purchases of goods or services that are clearly distinguishable in account books, and the uses are divided into exclusive supply tax use, exclusive tax-exempt use, ...