What documents should obtain to claim the imported VAT and book the cost when importing goods?

Importing goods into Taiwan requires proper documentation to ensure compliance with regulations and to claim the imported VAT and book the cost, there are specific documents that must obtain when purchasing or importing goods from abroad. 

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When a Taiwan company purchases or imports goods from abroad, it shall obtain 1. the invoices of foreign companies, 2. the import declaration issued by Taiwan Customs Administration, and 3. proof and payment.  Without these documents, the tax authority will not recognize the cost of imported goods. 

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There are two common scenarios when importing goods into Taiwan, each with its own set of procedures for obtaining the necessary documentation.

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Case 1: Ship via FedEx. If a foreign supplier ships small packages to a company in Taiwan via FedEx, the supplier will declare and prepay the tariff and VAT for the company under simplified declaration procedures. Upon payment, the company should receive a tariff declaration certificate (海關進口快遞貨物稅費繳納證明) issued by the Customs Administration.

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Case 2: Ship via a forwarder or a logistics. if a company uses a forwarder or logistics company to import goods, the forwarder will declare the tariff and VAT for the company under normal declaration procedures. The company will then receive the import declaration form (進口報單).

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How to calculate the cost of imported goods?

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Importing goods can be a complex process that involves various taxes and fees. To help our clients better understand the cost structure of imported products, we provide a formula for calculating the import tax, anti-dumping tax, VAT, and cost of the product. However, we advise you to confirm the import tax rates with your forwarder, as different products and goods from different countries may have varying import tax rates. For instance, textile-based products such as socks and towels may attract anti-dumping duties when imported from certain countries.

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To calculate the import tax, anti-dumping tax, VAT, and cost of the product, the following formula applies:

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Import tax = total package value (CFR value) x import tax rate

Anti-dumping tax = total package value (CFR value) x anti-dumping tax rate

VAT = (total package value (CFR value) + Import tax + Anti-dumping tax) x 5%

Cost of product = total package value (CFR value) + Import tax + Anti-dumping tax + VAT

Here's an example to help illustrate the formula:

 

Ex: Suppose you import 10 KG pillowcases with a CFR value of 10,000. The import tax rate is 10.5% and the anti-dumping tax rate is 29.72%. Using the formula above, we can calculate the following:

Import tax = 10,000 x 10.5% = 1,050

Anti-dumping tax = 10,000 x 29.72% = 2,972

VAT = (10,000 + 1,050 + 2,972) x 5% = 701.1

Cost of product = 10,000 + 1,050 + 2,972 + 701.1 = 14,723.1

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