What is a Taiwan GUI (Government Uniform Invoice)? All VAT-registered merchants in Taiwan must apply for the government’s preprinted invoice books. In general, only books printed by the government may be used to send invoices to clients. A corporation must request government pre-approval if it wants to use self-printed invoices. Any authorized self-printed invoice must be assigned a unique serial number.
Any invoice sent from one business firm to another must include the counter entity’s Government Unified Invoice Number. A corporate entity’s identification number in Taiwan is typically seen as a Government Unified Invoice Number.
The government can track invoices sent from one company to another by managing the GUI serial numbers. In addition, the government has made it impossible for enterprises in Taiwan to underreport income by comparing VAT filings to income tax reports.
Additionally, the Taiwanese government has implemented a lottery system over GUI serial numbers to stop companies from understating income for transactions made with individuals. This technique is designed to promote the purchase of GUIs from sellers. Customers who purchased GUIs for non-commercial use can compare GUI serial numbers to determine the winning lottery numbers that the government will publish. The rotary’s grand prize is pegged at NTD 2 million.
Understanding How to Read a Taiwan GUI
Structure of a Taiwan GUI
The Taiwan GUI, or Government Uniform Invoice, is a standardized sales receipt that plays a central role in the country’s value-added tax (VAT) system. Understanding how to read a GUI is essential for both consumers and business operators, especially those new to the Taiwanese market.
Key Elements Found on a GUI
A typical Taiwan GUI contains specific information such as the invoice number, date of issuance, seller and buyer details, itemized sales amounts, and the applicable tax. The invoice number is usually an alphanumeric code that corresponds to the lottery system, making it relevant for both tax compliance and consumer participation in the government lottery draw.
Importance of Accurate Analysis
The seller’s VAT number is crucial for accounting and tax reporting purposes, while the listed transaction details, including tax-exclusive and tax-inclusive amounts, help ensure transparency. For those using electronic GUIs, many details are digitally embedded but still follow the same format and structure. Familiarity with these components not only ensures accurate recordkeeping but also helps avoid disputes or misunderstandings with vendors or tax authorities.
What Are the Five Kinds of Taiwan GUI?
Taiwan’s version of a VAT invoice is known as a GUI and is produced and sold by the MOF. The Regulations Governing the Use of Uniform Invoices restrict the format, content, and use (Regulations). According to the Regulations, there are five different types of GUI:
1. Triplicate GUI
Invoices issued to business entities. For auditing and tracing, three copies are required.
The invoice issuer retains the first copy (called retention copy). The deduction copy (second copy) would be returned to the buyer a tax deduction or reduction declarations according to the provisions of the Act; the third copy shall be the receipt copy to be given to the purchaser as an accounting voucher.
2. Duplicate GUI
Invoices sent to individuals or overseas corporations. Two copies are required.
The duplicate style is similar to the Triplicate GUI. Only there are only two copies. The first copy is the retention copy, which is kept by the invoice issuer, and the second copy is the receipt copy, which is provided to the purchaser as a receipt. Even if your overseas clients do not want the duplicate GUI, you should issue it if you sell items or provide services to them.
3. Cash register GUI
Receipts generated via cash registers.
4. Computerized Register GUI
A company’s sales of goods or services are recorded on a computer.
5. Electronic GUI
When a business entity sells products or services to a purchaser, the GUI must be issued, sent, or accessed through the internet or other electronic means; there must be a storage media file, a receipt media file, and a certification media file.
How And When Will I Obtain the Issuance of the GUI Tax Invoice?
When you make a purchase in Taiwan, the seller is obligated by law to assess and collect VAT and send you a standardized invoice document known as a Government Uniform Invoice (GUI or eGUI).
The “Time Limit for Issuing Sales Documentary Evidence” part of Taiwan’s “Value-added and Non-value-added Business Tax Act” specifies this requirement. The invoice content is regulated and standardized for all firms.
Following your purchase online, the seller will probably send your eGUI to the email address associated with your account. Save this email so you can quickly access your invoice number.
Contact the seller if you want your GUI delivered to a different email address.
Each GUI comes with an invoice number that you may use to enter the Taiwan GUI lottery. To participate, utilize the Taiwan Ministry of Finance’s “Claiming Reward App” and “E-Invoice platform” to register your email address and sign up for lottery result alerts.
If you cancel your order and receive a refund, your Taiwan GUI will be invalid and ineligible for the drawing. The seller will provide you with a reimbursement receipt.
Taiwan GUI and Accounting: Practical Applications for Businesses
Recording GUIs in Your Books
For businesses operating in Taiwan, proper handling of the Taiwan GUI is vital for accounting and tax compliance. Each issued GUI serves as evidence of revenue or expenses and must be correctly recorded in accounting systems. Whether operating with manual bookkeeping methods or using digital software, businesses must ensure that GUIs are categorized accurately by transaction type and tax treatment.
Retention and Filing Requirements
GUIs should be stored in accordance with the statutory retention period, which applies to both paper and electronic formats. During VAT return preparation, businesses rely heavily on GUI data to calculate input and output tax, ensuring the correct remittance to tax authorities.
Integration with Modern Systems
For those issuing GUI triplicates, the top copy is retained by the issuer for recordkeeping purposes, the second copy is submitted to the tax authorities by the customer, and the third copy is passed on to the customer. Understanding how to integrate GUIs into financial records minimizes the risk of errors, improves tax filing accuracy, and supports smoother audits. As Taiwan continues to encourage electronic invoicing, businesses are also expected to maintain digital archives and ensure system compatibility with the e-invoice platform, further reinforcing the need for sound accounting practices.
Difference Between Business and Individual eGUI Tax Invoice
The eGUI tax invoice is a legal document issued when a company sells products or services to customers. The eGUI is a tax invoice issued, transferred, or received electronically over the Internet or other means.
The “Business” eGUI, which can be used as a tax certificate for accounting purposes, is issued with the purchasers’ business registration number.
Despite not receiving the buyers’ company registration number, the “Individual” eGUI is still eligible for the lottery.
Circumstances that are not required to issue GUI
There are also circumstances in which the seller is not required to issue a GUI to its clients, such as small-scale business entities, banks, insurance companies, exporting products or services.
As there are lots of details and regulations, it is suggested that you should check with the tax expert like Premia TNC before you start the work.
Steering Clear of Common Errors When Handling a Taiwan GUI
Late Issuance Risks
While the Taiwan GUI system is designed to simplify invoicing and tax compliance, common mistakes can still occur if users are unfamiliar with the regulations. One frequent error is the late issuance of a GUI, which must be generated within a specific time frame following a sale. Delayed issuance can lead to penalties or disallowed deductions.
Data Accuracy Matters
Another oversight involves incorrect or incomplete information on the invoice, such as wrong VAT numbers or calculation errors, which can invalidate the document for tax purposes. Businesses may also face issues when failing to properly differentiate between e-GUIs and traditional paper GUIs, particularly in how they are stored or reported.
Maintaining Compliance
In some cases, users inadvertently discard GUIs before the end of the retention period, potentially creating compliance gaps during audits. Ensuring consistent attention to invoice details and staying updated with changes in Taiwan’s tax guidelines is essential for reducing such risks. By understanding and avoiding these common pitfalls, companies can uphold tax compliance and maintain accurate financial documentation within the Taiwan GUI framework.
FAQS on Taiwan GUI
Q. What is GUI in Taiwan?
A: "Government Unified Invoices" or "GUI" Vendors in Taiwan who are registered for VAT must apply to the government for a supply of pre-printed invoice books. Government-printed invoice books are the sole acceptable method of generating invoices for clients.
Q. What is an eGUI?
A: "Electronic Government Uniform Invoice" (often referred to as "eGUI") is the acronym for Taiwan's version of the GUI. Invoices that are sent or received electronically are known as eGUIs. When it comes to electronic invoices, the Uniform Invoice Use Method standard sets the guidelines.
Q. Do I need to issue GUI if my Taiwan entity have the compensation income from 3rd party?
A: No, your Taiwan entity is not required to issue GUI to the 3rd party. However, the supporting documents should be in place (e.g. communication record or agreement).
Q: Do I need to issue GUI if I export products or services to clients outside of Taiwan?
A: No, you don’t need to issue GUI to client. However, there will be other documents need to be submitted to the tax authority (e.g. contract, invoice, bank remittance).
