Taiwan MOF Clarifies VAT Treatment of Interest for Late Payment on Lease of Residential Property

The Taiwanese Ministry of Finance Aug. 5 clarified the VAT treatment for interest paid by the lessee for late rent payments on residential property. The clarification includes that: 1) the interest charged by the lessor for a late rent payment is subject to VAT and the lessor is required to issue a valid VAT invoice; and 2) liquidated damages for breach of the lease isn’t subject to VAT. [Taiwan, Ministry of Finance, 08/05/19]

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