Processing Transactions with GUI/VAT in Taiwan

In Taiwan, business tax (BT) is imposed under two systems: the VAT system and the non-VAT (special BT) system. Financial institutions, small-scale companies, and certain restaurants use the special BT system. Their sales, based on gross business receipts, are subject to business tax.

Taiwan Business Tax Law (BTL) stipulates that all goods and services sold by wholesalers, retailers, or manufacturers must be issued with a GUI as the accounting receipt to buyers of goods and services, and as the official accounting document for tax reporting.

If the buyer is a business entity, the business tax computed should be stated separately from the sales amount on the GUI. If the buyer is not a business entity, the business tax does not need to be itemized on the GUI. All sales of goods and services in Taiwan, as well as all import of goods to Taiwan, are subject to business tax.

If you sell goods or services, you must provide a GUI to your customer for the transaction. Similarly, if you purchase goods and services, your supplier must provide a GUI to you for the transaction. The JD Edwards EnterpriseOne localization for Taiwan enables you to set up the system with required data for the GUIs that you generate for your customers, and to print GUIs for certain sales transactions. It also enables you to process the GUI information provided to you from your suppliers' GUIs, and to generate GUI information in the situations in which a supplier cannot give you a GUI. For example, you might procure transportation services such as airline or train tickets for which the supplier does not give you a GUI. You can enter the required tax information in the JD Edwards EnterpriseOne system even though neither you nor your supplier generates a GUI for these transactions.