On 21 September 2026, the Taipei National Tax Bureau reaffirmed the Value-Added and Non-Value-Added Business Tax (VANBAT) Act requirement that sellers engaged in installment sales must issue uniform invoices (GUI) according to the agreed payment schedule, irrespective of whether the buyer has actually paid the installment. The Bureau explained that the tax liability for business tax arises at the time of the sale transaction, which for installment sales is deemed to occur on each scheduled payment date as per the contract. This rule ensures that the government collects business tax revenue in a timely manner and prevents sellers from deferring tax obligations by delaying invoice issuance until cash collection. The announcement also warned that failure to issue invoices on time may result in penalties of up to 5% of the sales amount, with a minimum of NT$1,000 and a maximum of NT$10,000 per occurrence. Sellers are advised to maintain robust invoicing systems that automatically generate invoices on the contractual due dates, and to separately track accounts receivable for collection purposes.
Key Takeaways
- Time of Sale Fixed: For installment sales, the tax point is each contractual installment date, not the cash receipt date.
- Mandatory Invoicing: Uniform invoices must be issued on each due date; non-compliance attracts penalties.
- Systemic Compliance: Businesses should automate invoice generation aligned with contract schedules to avoid human error.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement