Taiwan Mandates Electronic Submission for Sales Returns and Allowances Starting 2025
The Ministry of Finance of Taiwan has announced a new regulation aimed at enhancing the accuracy and efficiency of tax reporting. Starting from January 1, 2025, business owners are required to electronically submit proof of sales returns or allowances (discount proof) when goods or services are returned or discounted after an electronic invoice has been issued. This regulation mandates that sellers upload the proof of return or allowance to the Ministry’s electronic invoice platform. Failure to comply with this requirement could lead to penalties ranging from NTD1,500 to NTD15,000, unless the issue is corrected within the prescribed timeframe.
In an effort to allow businesses time to adjust to the new process, a grace period has been provided. From January 1 to June 30, 2025, businesses can submit their returns and allowances without facing penalties for late or inaccurate submissions. However, after June 30, 2025, businesses must comply with the regulation to avoid penalties. The Ministry urges business owners to update their systems and tax reporting procedures to ensure compliance.
This regulation is designed to enhance tax transparency and prevent any potential discrepancies in tax records, benefiting both businesses and the government. By adopting this new electronic system, Taiwan aims to streamline tax reporting, reduce errors, and improve overall tax collection processes. Businesses should take action now to avoid fines and ensure smooth operations under new regulation.
