Regulations Governing VAT Refund Claims by Foreign Travelers Purchasing Goods Eligible for VAT Refund
The terms used in these Regulations are defined as follows:
1. Foreign traveler: Means a traveler who enters the Republic of China (ROC) on a non-ROC passport and has stayed within ROC territory for less than 183 days from the date of entry.
2. Authorized stores: Means a store that meets the requirements set out in Article 4, paragraph 1, and has entered into a contract with a Private tax refund operator, and has been approved for registration by the local competent tax authority of the place where the store is located.
3. Private tax refund operators: Means a private business that is engaged to handle matters relating to VAT refunds to foreign travelers according to the provisions of the preceding article.
4. Meet the minimum purchase amount to qualify for VAT refund: Means the total amount (VAT inclusive) of a purchase of Selected goods eligible for VAT refund at any single authorized store on any single day is NT$2,000 or more.
5. Selected goods eligible for VAT refund: Means any VAT taxable goods that can be carried out of the ROC by a foreign traveler, but not including the following:
(1) Items prohibited from being carried on board an aircraft or ship for safety reasons.
(2) Items in contravention of aircraft cabin restrictions.
(3) Items not carried with eligible applicants on the same outward bound journey from the R.O.C.
(4) Consumable goods being used either totally or partially in the territory of the R.O.C.
6. Prescribed time period: Means the period of time from the day of purchase of Selected goods eligible for VAT refund to the day of the Selected goods eligible for VAT refund being carried out of the ROC, which shall not exceed 90 days. However for the Selected goods eligible for VAT refund that has been claimed VAT refunds through Authorized Downtown Refunds Service, the foreign travelers shall carry the Selected goods eligible for VAT refund out of ROC within 20 days from the date of claim.
7. Authorized Downtown Refunds: Means the VAT refunds to foreign travelers that being handled at a tax refund counter of the business place of an Authorized store established by a Private tax refund operator Private tax refund operator.
8. In-store small-amount VAT refund service: Means the total amount (VAT inclusive) of purchase of Selected goods eligible for VAT refund proceeded by any single authorized store authorized by and on behalf of a Private tax refund operator Private tax refund operator, to handle VAT refund and its advance payments to foreign travelers on any single day is less than NT$24,000.