If a business entity sells its used passenger car or motorcycle purchased from a person who is not required to file a tax computation under this Section, such business entity may calculate the input tax by the following formula:
Input tax =(Purchased cost of the used passenger car or motorcycle)/(1 + applicable collection rate)× Applicable collection rate
The business entity shall report the input tax as referred to in the preceding paragraph in order to deduct it from the output tax of the used passenger car or motorcycle in the same period in which it reports the sales amount of such passenger car or motorcycle. However, if the input tax of the used passenger car or motorcycle is higher than output tax of the aforesaid vehicle, the excess portion shall not be deducted.
When the business entity files the input tax as referred to in the first paragraph above, it shall provide relevant documents concerning the purchase of the aforesaid used passenger car or motorcycle.
The preceding paragraphs shall be applicable to cases not currently being assessed or pending final decision at the effective date of this amended Article.