Taiwan MOF Explains VAT on Resale of Real Property by Businesses

The Taiwanese Ministry of Finance April 26 explained the VAT treatment on the resale of real property by businesses. The agency explained that: 1) a taxable account based on the full amount of the resale price should be opened by a business operator; 2) if a business owner purchases a pre-sale house from a builder and resells it before obtaining the ownership registration, it isn’t a sale of real estate and VAT doesn’t apply; 3) the sale of land is exempt from sales tax, and a taxable uniform invoice is issued according to the transfer price and delivered to the ...