Chapter VI: Value Added Tax
7. Adjustments, Collection, and Refund
(b) Where he or she intends to stay in other countries for a period of more than six months
(2) If a trader deems it necessary, he or she may designate a tax manager with certain qualifications to deal with the filing of tax returns, payment, refund and any other necessary matters
7. Adjustments, Collection, and Refund
(b) When details of the tax invoices, accounting books, and any other evidence are evidently false in view of the capacity of the facilities, number of employees, and the market prices of raw materials, commodities, products, or various charges
(c) When details of the tax invoices, accounting books, and any other evidence are evidently false in view of the quantities of raw materials used, electric power used, and other operating status
b. Inquiry and Investigation
(1) Where it is necessary to make an investigation, the tax officials concerned may make an inquiry into the related matters or investigate business records and articles related thereto.
(2) Where it is necessary to preserve the right for value-added tax or to investigate the matters related thereto, the competent tax authority may order taxpayers to present business records and articles related thereto, and may request any other necessary materials.
c. Penalty Tax
Type Coverage Applied
amount
Penalty tax rate
Etc.
①Registration ⓐ Penalty tax for non-registration
In the case of
non-registration
Supply price
1% 0.5% of supply price for simplified taxpayers
ⓑPenalty In the case of Supply 1%
tax for false registration
being registered under others’
name
price
②Revenues ⓐPenalty tax for non-issuance of tax invoice
In the case of non-issuance of tax invoice
Supply price
2%
ⓑPenalty tax for Delayed issuance
In the case of issuing tax invoice by the deadline for filing a final return for the taxable period during which the relevant
goods or
services are supplied
Supply price
1%
ⓒPenalty tax for false tax invoice
In the case of issuing tax invoice
without providing goods and services
Supply price
3%
ⓓPenalty tax for issuing tax invoice under others’
name
In the case of issuing tax invoice under the name other
than the
supplier of goods and services
Supply price
2%
ⓔPenalty tax for entering inflated amount of supply price
In the case of entering inflated
amount of supply price after the supply of
Inflated amount exceeding the actual supply price
2%
goods or services
ⓕPenalty tax for incomplete tax invoice
In the case where tax invoice
contains
omission or false
information
Supply price
1%
ⓖPenalty tax for non-submission of
aggregated tax invoice on a place of sales basis
In the case where
aggregated tax invoice is not filed on a place of sales basis
Supply price
0.5%
ⓗPenalty tax for incomplete tax invoice on a place of sales basis
In the case where
aggregated tax invoice
contains omission or false
information
Supply price
0.5%
ⓘPenalty tax for delayed submission of
aggregated tax invoice
In the case of submitting estimated tax liability when filing
confirmation report
Supply price
0.3%
ⓙPenalty tax for delayed submission of e-tax invoice
In the case of submitting e-tax invoice to the
Commissioner of NTS after passing the due
Supply price
0.5%
date by 11th of the following month of the last day of taxable period
to which
supply belongs
ⓚPenalty tax for non-submission of e-tax invoice
In the case of not submitting e-tax invoice
to the
Commissioner of NTS by 11thofthe following month of the last day of taxable period
to which
supply belongs
Supply price
1%
③Purchase ⓐPenalty tax for entering inflated amount of supply price into the sum table of tax invoices on place of purchase
In the case where supply
price is
inflated or false
Inflated amount of supply price entered
0.3%
ⓑ Penalty tax for delayed receipt of tax invoice
In the case of receiving tax invoice after the issuance period
Supply price
0.5%
ⓒPenalty tax for non-submission of the sum table of tax
In the case where input tax deduction is allowed through tax invoice after
Supply price
0.5%
invoices on place of purchase
the authorities confirm
revision claims
ⓓPenalty tax for false tax invoice
In the case of receiving tax invoice
without getting goods and services
Supply price
3%
ⓔPenalty tax for receiving tax invoice under other’s name
In the case of receiving tax invoice under the name other
than the
supplier of goods and services
Supply price
2%
ⓕPenalty tax for entering inflated supply price
In the case of receiving tax invoice with inflated supply price after being supplied with goods or services
Inflated amount exceeding the actual supply price
2%
④Penalty tax for incorrect filing of zero-rated tax base
In the case of non-reporting, underreporting
and non-
submission of necessary document
Supply price
0.5%
⑤Exclusion of overlapping penalties
i)Excluding ②−ⓑⓕⓖⓗⓘⓙⓚfrom ① ii)Excluding②−ⓖⓗⓘfrom②−ⓑⓕⓙⓚ
iii)Excluding①②−ⓖⓗⓘ③-ⓐⓑⓒ from
②−ⓐⓒⓓⓔ③-ⓓⓔⓕ
iv) Excluding②−ⓕⓙⓚ from ②−ⓐⓑ
5) Excluding②−ⓙⓚ from ②−ⓕ
6)In the case of ⑤, excluding estimated tax liability upon confirmation reporting
⑥Reduction of penalty tax i)In the case of reporting for correction within 6 months: penalty tax for underreporting and inflated refund reporting
ii)In the case of late reporting within 1 month:
penalty tax for non-reporting
iii)In the case of late submission within 1 month:
penalty tax for non business registration, for incorrect submission of aggregated tax invoice (on a place of sales basis) and for incorrect submission of bill)
⑦Penalty tax for incorrect reporting and payment
Stipulated in national tax law
d. Collection
(1) Where a trader has actually paid the tax amount which is less than the returned tax amount, the competent tax office should, in such a manner as is used for the collection of national tax, collect the unpaid tax amount, or in the case of adjustment or correction, the additional tax amount payable.
(2) Where a trader has failed to file a preliminary return, or has filed an incorrect or incomplete return, the competent tax office may investigate and determine the tax base and tax amount and collect the tax amount due.
(3) Collectors at customs houses collect value-added tax in such a manner as is used for the collection of customs duties.
e. Refund
(1) Ordinary refund
The competent tax office refunds to a trader the tax amount refundable for each taxable period concerned based on each taxable period.
(2) Early refund
Where a trader falls under any of the following categories, the competent tax office may refund the tax amount refundable to the trader within 15 days from the ending date of the preliminary return:
(a) In the case of zero-rate;
(b) In the case where a trader newly establishes, acquires, expands, or extends the business facilities.