Taiwan MOF Clarifies Treatment of Underreported VAT on Imported Goods

The Taiwanese Ministry of Finance May 3 clarified the treatment of underreported VAT on imported goods. The clarification includes: 1) taxpayers can’t deduct the amount of VAT imposed by customs due to the underreporting of the taxable value of imported goods; 2) taxpayers must make a supplementary declaration if a business operator discovers mistakenly declared non-deductible input tax; and 3) interest rates may be increased without penalty for taxpayers who pay the evaded tax before an audit or investigation by the tax authority. [Taiwan, Ministry of Finance, 05/03/22]

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