Company Imports: A Guide to Business Tax (VAT), Import Duties and Formal Customs Declaration
A company importing goods must keep two taxes apart: customs duty (import duty) is part of the cost of goods and cannot be credited; the 5% business tax collected by Customs is claimed as an input tax credit with the “deduction copy of the customs-collected business tax payment certificate” bearing the company’s Unified Business Number. Goods with a dutiable value over NT$50,000 are high-value express goods (X4) and, under Article 12 of the Sea Express Cargo Clearance Regulations, should, in principle, go through formal declaration on a standard import declaration; if you still choose simplified declaration with HowBridge, you bear the risk of customs scrutiny yourself. To file a formal declaration with HowBridge, the company must first complete importer/exporter registration and prepare the invoice + packing list and a power of attorney; goods subject to import regulations also need a permit or inspection documents. HowBridge’s formal declaration fee is NT$800, taxes must be prepaid, and freight, the declaration fee and other service fees are billed on an e-invoice, which the company can use as supporting documentation when filing business tax and profit-seeking enterprise income tax (the imported goods must still meet requirements such as being used exclusively for the company’s main and ancillary business).
* Input tax credit (except for input tax that may not be credited under Article 19 of the Value-added and Non-value-added Business Tax Act, hereinafter the Business Tax Act) applies to businesses that use uniform invoices and compute business tax under the general method; small-scale business entities taxed on an assessed basis may, under Article 25 of the Business Tax Act, only deduct 10% of the input tax from their assessed tax, must file the purchase documents for each month of the period by the 5th of months 1, 4, 7 and 10 (January, April, July and October), and cannot use this deduction if their assessed tax is below the minimum taxable threshold.
📅 Last updated 2026-09-17 · ✍️ HowBridge Editorial Team · 📚 Legal provisions checked against the original texts in the Laws & Regulations Database of the R.O.C. (Taiwan)
What do companies most often get wrong on import taxes?
Short answer: treating “import duty” and “business tax” as the same thing, and filing under an individual’s name so the company never receives documents bearing its Unified Business Number. When goods are imported, business tax is collected by Customs (Article 41 of the Business Tax Act); to offset output tax with input tax, a company must obtain documents showing its name, address and Unified Business Number (Article 33 of the Business Tax Act); and under Article 90, Subparagraph 10 of the Regulations Governing the Assessment of Profit-seeking Enterprise Income Tax (營利事業所得稅查核準則), customs duty on imported goods shall be included in the cost of the goods. For parcels declared under an individual’s name (for example, through individual EZ WAY real-name authorization), the duty and tax documents carry the individual’s details, so they cannot be claimed as the company’s input tax credit and are hard to use as original vouchers for the company’s purchase cost.
Customs duty cannot be credited
What can offset output tax is business tax; customs duty (import duty) is a cost of acquiring the goods and is included in purchase (inventory) cost, then recognized as cost of goods sold when the goods are sold.
A 0% duty rate does not mean no business tax
Goods with a 0% rate in the first column of the tariff schedule are still subject to 5% business tax collected by Customs at import, unless they are exempt items listed in Article 9 of the Business Tax Act. Among the company tax bills imported into HowBridge’s system, 70.1% had customs duty of 0 but were still charged business tax.
Taxes collected and paid on your behalf are not on the service invoice
The customs duty and business tax that HowBridge collects and pays on your behalf are taxes paid to Customs and are not included in the sales amount on HowBridge’s invoices. Article 8, Paragraph 3 of the Regulations Governing the Use of Uniform Invoices (統一發票使用辦法) provides that, where amounts are collected and passed on under a mandate with no difference between receipt and payment, and the buyer named on the pass-through document is the principal, that document may be given to the principal without issuing a separate invoice. Tax bills for taxes paid on your behalf name the company as the taxpayer, so HowBridge does not issue a separate invoice for the tax amounts; the duty and tax payment certificate issued by Customs serves as proof. HowBridge’s invoices cover service fees such as freight, the declaration fee and the handling fee for paying taxes on your behalf.
⚠️ If the description, quantity or price of the goods does not match the actual transaction, Customs may assess additional tax and penalties, and the National Taxation Bureau may also be more likely to request supporting evidence or question whether the input tax relates to goods used for the company’s main and ancillary business — input tax on purchases not used for the main and ancillary business may not be credited (Article 19, Paragraph 1, Subparagraph 2 of the Business Tax Act); nor may business tax that is additionally collected at import because Customs found an under-declared dutiable value subject to tax evasion penalties (Ministry of Finance eTax Portal Q&A 9301, Article 30 of the Enforcement Rules of the Business Tax Act). Make sure the descriptions and amounts on the invoice and packing list are truthful.
Do goods valued over NT$50,000 require formal declaration?
In principle, yes. Imported express goods with a dutiable value over NT$50,000 are “high-value express goods” (commonly called X4). Under Article 12, Paragraph 1, Subparagraph 1 of the Sea Express Cargo Clearance Regulations, they must be cleared on a standard import declaration — that is, formal declaration. Company goods shipped by sea express are subject to the same rule; Keelung Customs’ “Sea Express Cross-border Online Shopping Notice” (海運快遞跨境網購須知) also lists “a dutiable value exceeding NT$50,000” as the first situation that requires formal declaration. At HowBridge, if the total goods value exceeds NT$50,000 and you still choose simplified declaration, you must first confirm that you bear the risk of customs scrutiny yourself before you can submit; for company purchases, we recommend choosing formal declaration directly.
| Code | Category (Article 11, Sea Express Cargo Clearance Regulations) | Dutiable value | Clearance method |
|---|---|---|---|
| X1 | Imported express documents | — | Simplified declaration form |
| X2 | Imported low-value tax-exempt express goods | NT$2,000 or less | Simplified declaration form |
| X3 | Imported low-value taxable express goods | NT$2,001–50,000 | Simplified declaration form |
| X4 | Imported high-value express goods | Over NT$50,000 | Standard import declaration (formal declaration) |
* The X1–X4 codes are set out in the second point of the Operational Directions for Customs Clearance of Sea Express Cargo and the second point of the Operational Directions for Simplified Declaration and Customs Clearance of Air Express Cargo; the value tiers are the same as in Article 11 of the Sea Express Cargo Clearance Regulations.
The NT$50,000 threshold refers to the “dutiable value”, not the product’s selling price. Under Article 29 of the Customs Act (關稅法), dutiable value is based on the transaction value and shall include freight, loading/unloading and handling charges, and insurance up to the port of importation. Goods quoted at NT$48,000 that exceed NT$50,000 once freight is added are still high-value goods.
In these cases goods shall, in principle, be cleared on a standard import declaration regardless of value
Under Article 12, Paragraph 1 of the Sea Express Cargo Clearance Regulations, the following goods shall be cleared on a standard import declaration even if their dutiable value is below NT$50,000:
① Goods subject to import/export regulations (special cases announced by Customs may still use the simplified declaration form)
② Taxable goods under the Commodity Tax Act (貨物稅條例) or the Specifically Selected Goods and Services Tax Act (特種貨物及勞務稅條例)
③ Goods subject to countervailing, anti-dumping or retaliatory duties as announced by the Ministry of Finance
④ Goods subject to import relief measures by the Ministry of Economic Affairs or special safeguard measures announced by the Ministry of Finance
⑤ Tariff-rate quota goods
⑥ Goods with duty or tax reduction or exemption (however, tax-exempt samples imported not in an individual’s name, with a total dutiable value of NT$3,000 or less per declaration, may still use the simplified declaration form)
⑦ Cases such as those needing a declaration copy for duty drawback or bonded purposes, re-imports that require retrieving the original declaration, or declaration types other than the foreign goods import declaration (G1)
🚫 Goods in the same shipment will not be declared separately. Article 15 of the Sea Express Cargo Clearance Regulations provides that sea express operators may not declare the same batch of imported express goods (sent by the same consignor to the same consignee on the same voyage) separately; in case of violation, besides penalties on the operator, Customs shall aggregate the dutiable value and levy import duties under Article 30 of the same Regulations. In HowBridge’s practice, consolidation orders for the same declarant on the same day are also declared together, and requests to split shipments are not accepted. Batches with a goods value over NT$50,000 should, in principle, go through formal declaration; if you still choose simplified declaration, you bear the risk of customs scrutiny yourself.
Simplified or formal declaration: which should a company choose?
Companies can obtain creditable tax documents under simplified declaration too — formal declaration is not the only way to claim them; what really decides the route is the dutiable value and the nature of the goods. Goods with a dutiable value of NT$50,000 or less that do not fall under the exclusions above may use simplified declaration; goods subject to import regulations, commodity tax and the like require formal declaration; goods over NT$50,000 should, in principle, go through formal declaration, and if you choose simplified declaration you bear the risk of customs scrutiny yourself.
| Item | Simplified declaration (X2/X3) | Formal declaration (standard import declaration) |
|---|---|---|
| Scope | Dutiable value of NT$50,000 or less, and not excluded under Article 12 of the Sea Express Cargo Clearance Regulations | Dutiable value over NT$50,000 (X4), or goods subject to import regulations, commodity tax, etc. |
| Declaration form | Simplified declaration form for imported express goods | Standard import declaration |
| Declarant | Individuals or companies and firms | Accepted by HowBridge: companies and firms that have completed importer/exporter registration |
| Brokerage authorization | Individuals can use EZ WAY real-name authorization; companies and firms authorize in writing or via the Customs-Port-Trade Single Window | Power of attorney (written case-by-case or long-term authorization, or online authorization via the Customs-Port-Trade Single Window) |
| Required documents | Based on the declaration details in the consolidation order | Commercial invoice + packing list (IV＋PK) and power of attorney; goods subject to import regulations also need permits or inspection documents |
| HowBridge declaration fee | No separate formal declaration fee | NT$800 (per formal declaration) |
| Tax payment | Per consolidation order option (home delivery): “Collected by HCT Logistics” (collected on delivery, fee NT$30) or “HowBridge collects and pays” (tax added to your HowBridge bill, payable online, fee NT$40; not offered when the total goods value is below NT$800) | Limited to “HowBridge collects and pays”; taxes must be prepaid and settled by bank transfer |
| Delivery | Home delivery (convenience-store pickup is not available for declarations filed in the name of a company or firm) | Home delivery only via HCT Logistics (Hsinchu Transport); convenience-store pickup not available |
| Documents the company receives | When taxed, the “Customs Express Goods Import Duty and Tax Payment Certificate” (海關進口快遞貨物稅費繳納證明; must be declared under the company name and Unified Business Number) + HowBridge e-invoice | “Customs Import Goods Duty and Tax Payment Certificate” (海關進口貨物稅費繳納證) + import declaration (進口報單) + HowBridge e-invoice |
💡 When a company uses simplified declaration, the declaration data must use the company name and Unified Business Number, so that the duty and tax payment certificate issued after taxation is the company’s document. X2 goods with a dutiable value of NT$2,000 or less that meet the exemption conditions are not charged business tax, so there is no tax to credit; only when tax-exempt release exceeds 6 times within a half-year and tax applies from the 7th time onward is there business tax to credit. For details on claiming input tax under simplified declaration, see the Import Declaration × Business Tax Input Credit Guide.
What documents does formal declaration require?
Under Article 17, Paragraph 1 of the Customs Act, an import declaration shall be filed together with the invoice, packing list and other documents required for importation. The Customs Administration, Ministry of Finance explains in “Documents Required for Import Declarations”: the invoice and packing list are required (no packing list is needed for bulk, large-volume or single-package goods); where a customs broker is entrusted, a power of attorney must be attached, unless a long-term authorization has been registered with Customs or online authorization has been completed; the import permit may be omitted where the goods are exempt from permits under the rules; and any other documents required by regulations (such as a commodity inspection certificate) must also be attached. To file a formal declaration with HowBridge, you need the following four items:
① Importer/exporter registration
Article 9, Paragraph 1 of the Foreign Trade Act (貿易法): companies and firms registered with the International Trade Administration as importers/exporters may engage in import and export business. HowBridge’s formal declaration uses companies and firms that have completed importer/exporter registration as the declarant: add a company declarant in the Member Center and enter the Unified Business Number; the system checks it against the International Trade Administration’s register of traders and, if it matches, shows “Customs-qualified”. If you are not yet registered, see the importer/exporter registration guide (the application is online; the official processing time for the English name pre-check is 3 working hours).
② Commercial Invoice + Packing List
The basic declaration documents specified in Article 17 of the Customs Act. HowBridge provides an Excel template (with separate invoice and packing list worksheets); after upload, the system checks each field: shipper and consignee, addresses, phone numbers and date; the description, quantity and unit on each line; net and gross weight; and the invoice currency and country of origin. Any missing items are listed — just correct them and upload again. Descriptions, quantities and amounts must match the actual transaction.
③ Power of attorney
A customs broker acting on a mandate must present a power of attorney, which may be a written case-by-case or long-term authorization, or an online authorization via the Customs-Port-Trade Single Window (Article 12 of the Regulations Governing the Establishment and Administration of Customs Brokers, 報關業設置管理辦法). Q11 of the Customs Administration’s FAQ on real-name authentication for express consignees states: “Real-name authentication does not apply to companies and firms; please use a paper power of attorney when filing the import declaration” — EZ WAY real-name authentication is for simplified express declarations by individuals. Companies can also complete online authorization on the Customs-Port-Trade Single Window with a MOEA business certificate (Customs Administration press release of 2023-05-23: a single authorization can remain valid for up to 5 years). When shipping with HowBridge, upload a case-by-case power of attorney completed in the Customs Administration’s format (blank power of attorney PDF); companies that import regularly may consider a long-term authorization.
④ Import permit or inspection documents (depending on the goods)
Determined by the “import regulations” of the goods’ CCC tariff code: some goods require an import permit or inspection or verification documents; others have no import regulations, so the invoice + packing list + power of attorney are enough. See the next section for how to check.
Which goods need an import permit, and which don’t?
Check the “import regulations” column of the goods’ CCC tariff code: if the column is blank, there are no special import regulations and you can file with the invoice, packing list and power of attorney; if it lists a licensing or inspection code, you must first obtain the permit, inspection or verification documents from the competent authority.
| Import regulations column | What it means | What to attach for formal declaration |
|---|---|---|
| Blank | No special import regulations; no permit required | Invoice + packing list + power of attorney |
| 121 | Import permit issued by the International Trade Administration, MOEA | Import permit (application process) |
| 111 | Controlled import; listed among restricted import goods | Special approval must first be obtained from the International Trade Administration |
| C01／C02 | Commodities subject to inspection by the Bureau of Standards, Metrology and Inspection, MOEA (C01: batch-by-batch inspection; C02: registration of product certification may be used) | Inspection certificate or certification registration documents (commodity inspection explained) |
| F01 | Food products that require import inspection under Taiwan Food and Drug Administration rules | Import inspection clearance documents (food import inspection) |
| MW0 | Goods from mainland China not permitted for import (industrial goods in Chapters 25–97 are subject to separate small-quantity permit-exemption rules) | In principle not importable; first confirm whether a permit exemption or special application applies |
The same tariff code may list several codes at once; the result of the International Trade Administration’s import/export regulations lookup at the time prevails. For the full code reference, see the import permit overview. HowBridge’s CCC tariff lookup lets you search by product name for the tariff code and import regulations first; final classification is determined by the Customs office handling the declaration. Goods subject to import regulations in principle cannot use simplified declaration even below NT$50,000 (Article 12, Paragraph 1, Subparagraph 2 of the Sea Express Cargo Clearance Regulations; except special cases announced by Customs).
How are import duty and business tax calculated? Which taxes does a company pay?
At import there is generally customs duty and business tax; goods subject to commodity tax also incur commodity tax, and Customs additionally collects a trade promotion service fee (0.04%). Business tax is not calculated on the product price alone, but on “dutiable value + customs duty (+ commodity tax)” (tax base under Article 20 of the Business Tax Act), at a rate of 5% (the rate range is set by Article 10 of the same Act, with the levy rate determined by the Executive Yuan).
| Tax/fee | Calculation | Legal basis | Company accounting |
|---|---|---|---|
| Customs duty (import duty) | Dutiable value × tariff rate (per CCC code) | Customs Act, Customs Import Tariff | Included in the cost of goods (Article 90, Subparagraph 10 of the Assessment Regulations); cannot be credited against business tax |
| Commodity tax (taxable goods only) | (Dutiable value + customs duty) × commodity tax rate | Article 18 of the Commodity Tax Act | Assess case by case with your accountant; goods subject to commodity tax require formal declaration |
| Business tax | (Dutiable value + customs duty + commodity tax) × 5% | Articles 10, 20 and 41 of the Business Tax Act | Claim input tax credit with the deduction copy (Article 38, Paragraph 1, Subparagraph 2 of the Enforcement Rules) |
| Trade promotion service fee | Dutiable value × 0.04%; not collected if the amount due is NT$100 or less | Article 21 of the Foreign Trade Act (statutory cap: 4.25 per ten thousand); explanations by the Customs Administration and the International Trade Administration | — |
Example: a company imports goods with a dutiable value of NT$80,000
Assumptions: 5% customs duty rate; goods not subject to commodity tax (rate for illustration only; the actual rate depends on the CCC code)
Of the NT$8,200 in duties and taxes, the NT$4,200 business tax can be credited against output tax when filing, while the NT$4,000 customs duty becomes part of the cost of goods. A company that only looks at “how much tax was paid in total” without booking the two separately will under-claim business tax, or wrongly record non-creditable customs duty as input tax.
If customs duty is 0, is business tax still due? HowBridge company tax bill statistics
Yes. Of the 385 company import duty and tax payment certificates imported into HowBridge’s system, 270 (70.1%) had customs duty of 0, yet every one of them was charged business tax. Goods with a 0% duty rate are still subject to 5% business tax collected by Customs at import, unless they are exempt items listed in Article 9 of the Business Tax Act — and this business tax is exactly what a company can claim as an input tax credit.
Scope: import duty and tax payment certificates in HowBridge’s system whose taxpayer has an 8-digit Unified Business Number (mainly companies and firms), imported into the system between 2025-12-22 and 2026-09-16 and queried on 2026-09-17. Aggregate figures only; no data on any individual company is included.
| 385 certificates / 31 companies | Company import duty and tax payment certificates / number of companies involved |
| 385 (100%) | Certificates charged business tax |
| 270 (70.1%) | Certificates with customs duty of 0 but still charged business tax |
| 385 (100%) | Certificates on which the business tax equals “business tax base × 5%” (within NT$1) |
| NT$112,984 / NT$29,474 | Total business tax / total customs duty; business tax is about 3.8 times customs duty |
These figures show two things: ① among these 385 company tax bills, customs duty is in most cases not the main tax burden — business tax is; ② since business tax appears on every bill, obtaining the deduction copy bearing the company’s Unified Business Number and filing it in the correct period is the key to handling a company’s import taxes. In addition, according to HowBridge’s internal statistics of 2026-09-10, 4,212 (33.2%) of the 12,699 CCC tariff codes in its database have a 0% rate in the first column.
How much does formal declaration cost, and how are taxes paid?
HowBridge’s formal declaration fee is NT$800 (per formal declaration), with freight calculated separately by chargeable weight; taxes for formal declaration must be prepaid and are collected and paid on your behalf by HowBridge, and the declaration fee, taxes paid on your behalf and the tax-payment handling fee are settled by bank transfer, while the freight on the same bill can still be paid online.
Declaration fee NT$800
When you choose formal declaration, a “declaration fee” line appears on your bill; simplified declaration carries no separate formal declaration fee.
Taxes must be prepaid
For formal declaration, the tax collection method can only be “HowBridge collects and pays”; cash-on-delivery tax collection by HCT Logistics (Hsinchu Transport) is not offered, and the tax amount is as assessed by Customs. A separate handling fee applies to taxes paid on your behalf and is shown before you submit the consolidation order. (By law, duties and taxes on a standard import declaration shall be paid within 14 days from the day after the tax payment notice is served — see Article 43 of the Customs Act and the Customs Administration’s “How Are Imported Goods Taxed and Released?”; for formal declaration with HowBridge, the customer prepays and HowBridge collects and pays on the customer’s behalf.)
Bank transfer only
Payments for formal declaration (the declaration fee, taxes paid on your behalf and the tax-payment handling fee) cannot be made by online card payment or mobile payment (the freight on the same bill can still be paid online); the billing page shows “Formal declaration · bank transfer” with the remittance details, and the bill is settled once accounting confirms receipt.
Invoicing
After settlement, HowBridge issues an e-invoice for freight, the declaration fee and the handling fee for taxes paid on your behalf (it can show the company name and Unified Business Number); taxes collected and paid on your behalf are not included in the invoice sales amount (Article 8, Paragraph 3 of the Regulations Governing the Use of Uniform Invoices), with the customs duty and tax payment certificate serving as proof.
How to file business tax and profit-seeking enterprise income tax lawfully: documents at a glance
A company needs to collect two kinds of documents: customs documents (proving the duties, taxes and import details) and HowBridge’s e-invoice (proving freight and declaration service fees). For business tax, file input tax with the deduction copy and invoices showing the business tax amount; for profit-seeking enterprise income tax, recognize purchase cost and expenses with the foreign supplier’s invoice, customs tax payment documents, and freight and declaration fee vouchers. (The Ministry of Finance eTax Portal’s “Notes on Online Transactions (Imports)” explains that businesses computing business tax under the general method whose imported goods are used exclusively for their main and ancillary business may claim a credit with the duty and tax payment certificate; businesses taxed on an assessed basis may claim up to 10% of the business tax paid on imported goods as a deduction from their assessed tax — per eTax Portal Q&A 9303, this must be filed by January 5, April 5, July 5 and October 5, and does not apply if the assessed tax is below the minimum taxable threshold.)
| Document | Issued by | Business tax | Profit-seeking enterprise income tax |
|---|---|---|---|
| Customs Import Goods Duty and Tax Payment Certificate (commonly called the customs tax bill; referred to in the Enforcement Rules of the Business Tax Act as the “deduction copy of the customs-collected business tax payment certificate”) | Customs | The business tax portion is claimed as input tax credit with the deduction copy (Article 38, Paragraph 1, Subparagraph 2 of the Enforcement Rules); customs duty cannot be credited | Customs duty is included in the cost of goods (Article 90, Subparagraph 10 of the Assessment Regulations; the original voucher for taxes is the tax bill receipt, Subparagraph 12 of the same Article); creditable input tax is not booked as cost or expense |
| Import declaration | Filed with Customs by the customs broker | Supports the description, tariff classification and use of the goods (input tax on goods not used for the main business may not be credited, Article 19 of the Business Tax Act) | Supporting documents for foreign purchases |
| Foreign supplier’s invoice (Commercial Invoice) | Seller | — | Original voucher for foreign purchases (Article 45, Subparagraph 1, Item 1 of the Assessment Regulations) |
| HowBridge e-invoice (freight, declaration fee and other service fees) | HowBridge | Invoices showing the company’s Unified Business Number and the business tax amount can be claimed as input tax credit (Article 33 of the Business Tax Act; Article 7 of the Regulations Governing the Use of Uniform Invoices: the e-invoice receipt file is for the business’s bookkeeping and credit claims) | Vouchers for customs clearance and pickup expenses and for freight on foreign purchases (Articles 45 and 75 of the Assessment Regulations); freight paid to acquire the goods is included in the cost of goods |
📅 Filing period: The Ministry of Finance (National Taxation Bureau of Kaohsiung press release of 2020-06-02) explains that import duty and tax payment documents should be filed for the month in which the tax was paid, and documents whose payment date falls in the next filing period are held over to that period; businesses using e-invoices can download import duty and tax payment data with a MOEA business certificate from the Ministry of Finance’s electronic filing and tax payment website (according to that press release). Taipei Customs (press release of 2023-08-25) also explains that duty and tax data for simplified express declarations and standard import declarations is uploaded daily to the Fiscal Information Agency, Ministry of Finance, so businesses can enter the tax bill number directly when filing business tax to claim the credit, without presenting paper copies. Input tax documents not filed in the current period may be filed for credit in a later period, but the credit must be claimed within 10 years (Article 29 of the Enforcement Rules of the Business Tax Act).
✓ Once the company’s customs tax bills and import declarations have been imported into the system, they can be viewed under the “Customs” tab on HowBridge’s billing page; e-invoices are uploaded to the Ministry of Finance E-Invoice Platform. For actual accounting and tax treatment, please follow the advice of your company’s accountant.
Why is business tax creditable while customs duty is a cost? What international standards and research say
Value-added business tax is designed to be borne by the final consumer, with businesses able to credit input tax at each stage of the transaction chain; customs duty, by contrast, is part of the cost of acquiring goods. Below is what international organizations, accounting standards and academic research say on these points. Each item has been checked against the original text and notes its limitations, to avoid over-extrapolation.
Businesses should in principle not bear VAT, except where the law explicitly provides otherwise
Paragraph 2.3 explains that suppliers at each stage should be entitled to a full right of deduction of input tax, so that the tax burden eventually rests on the final consumer rather than on intermediaries in the supply chain; Guideline 2.1 states that the burden of value added taxes should not lie on taxable businesses except where explicitly provided for in legislation.
Limitation: in Taiwan, examples of “where explicitly provided for in legislation” include input tax that may not be credited under Article 19 of the Business Tax Act (such as purchases not used for the main business, or entertainment expenses), and small-scale business entities taxed on an assessed basis, which can only deduct 10%.
Import VAT is collected together with customs duty, then credited like domestic input tax
VAT on imports is generally collected from the importer together with customs duties before the goods are released; allowing it to be deducted in the same way as domestic input tax preserves neutrality and limits distortions to international trade.
Limitation: this is a general cross-country description; the corresponding Taiwanese rules are Article 41 of the Business Tax Act (collection by Customs) and Article 38 of the Enforcement Rules (deduction copy).
Import duties are part of the purchase cost of inventories
The costs of purchase of inventories comprise the purchase price, import duties and other taxes (other than those subsequently recoverable by the entity from the taxing authorities), and transport, handling and other costs directly attributable to the acquisition of the goods.
Limitation: this is consistent with Article 90, Subparagraph 10 of the Regulations Governing the Assessment of Profit-seeking Enterprise Income Tax (“customs duty on imported goods shall be included in the cost of the goods”); treating creditable business tax as “recoverable” and therefore not part of cost is an interpretation based on these provisions — the original text does not mention business tax verbatim. For actual accounting treatment, follow the applicable accounting standards and your accountant’s advice.
IAS 2 Inventories, paragraph 11 (text adopted by Commission Regulation (EU) 2023/1803)
Customs documents are themselves a trade cost
The formalities and requirements of customs must be met each time a shipment crosses a border; the number and complexity of the documents required for clearance can also be seen as a fixed cost.
Practical meaning: preparing templates for the invoice, packing list and power of attorney once reduces friction for every later shipment. The report does not name specific documents; for the document list, rely on the Customs Administration’s explanations.
Low-value exemptions can be abused through undervaluation and split shipments
Low-value consignment reliefs can be abused by undervaluing goods, splitting consignments to stay below the threshold, or declaring commercial goods as gifts; the European Commission estimated that VAT losses on low-value goods from outside the EU could be as high as €5 billion per year.
Limitation: this is an upper-bound EU estimate from before the 2021 reform and cannot be applied to Taiwan; it illustrates why customs authorities pay close attention to split shipments and undervaluation.
E-invoicing improves business tax (VAT) compliance
Using data from Peru, the study found that in the first year after firms adopted e-invoicing, reported sales, purchases and VAT liabilities rose by over 5% on average, most markedly among small firms; however, existing stocks of VAT credits offset part of the revenue effect.
Limitation: the study was conducted in Peru. It can be read as showing that e-invoicing lets buyer and seller data be cross-checked, which makes it all the more important that input tax documents are genuine and complete.
Bellon, Dabla-Norris, Khalid & Lima, Journal of Public Economics 210, 2022
Business tax is calculated on dutiable value plus customs duty
Using a worked import declaration example, the thesis shows that business tax is calculated by adding customs duty to the dutiable values of the items and multiplying by 5%, and notes that business tax, commodity tax and other taxes due on imported goods are collected by Customs by law.
Limitation: the thesis focuses on determining dutiable value; its worked example does not include commodity tax.
Hsiao-Yu Yang (楊孝妤), Master’s thesis, National Taiwan University, 2023
How does formal declaration work with HowBridge? 6 steps
Complete importer/exporter registration and add a company declarant
In the Member Center, go to “Declarant management”, add a company declarant with its Unified Business Number, and confirm that “Customs-qualified” is shown.
Check the CCC tariff code and import regulations
Use the CCC tariff lookup to confirm the tariff code; for goods requiring an import permit, inspection or verification, obtain the documents from the competent authority first.
When the goods reach the Shenzhen consolidation warehouse, choose “formal declaration” on the consolidation order
Enter the total goods value and choose home delivery for the delivery address (formal declaration does not accept convenience-store pickup); tax collection is automatically set to “HowBridge collects and pays”.
Upload the invoice + packing list and power of attorney
After you upload the Excel invoice and packing list and the case-by-case power of attorney, the system reviews them; the consolidation order can only be submitted once the documents pass.
Sea express clearance and tax prepayment
The goods clear customs through the sea express clearance zone, where an AEO-certified partner customs broker files a standard import declaration; once Customs assesses the duties and taxes, they are added to your bill and paid by bank transfer.
Home delivery, then collect your documents for bookkeeping
HCT Logistics (Hsinchu Transport) delivers to your door; you receive HowBridge’s e-invoice, and once the tax bills and import declarations have been imported, they can be viewed under the “Customs” tab on the billing page for your accountant to file.
FAQ
How is business tax calculated when a company imports goods?
Can import customs duty be credited against business tax?
If goods are worth over NT$50,000, can they be split into several batches under simplified declaration?
What documents does formal declaration require?
Can I use HowBridge’s formal declaration without importer/exporter registration?
How much does formal declaration cost, and how are taxes paid?
Can freight for consolidated shipping be invoiced with the company’s Unified Business Number?
Can a company claim business tax credits when importing under simplified declaration?
Which goods require formal declaration regardless of value?
Will the NT$2,000 low-value exemption be abolished? Does it still apply?
In which period should the customs-collected business tax payment certificate be filed?
Glossary
- Formal declaration
- Declaring imports to Customs on a standard import declaration, with the invoice, packing list and other documents attached (plus a power of attorney when a customs broker is entrusted); high-value express goods with a dutiable value over NT$50,000, and goods subject to import regulations, commodity tax and the like, must all be cleared this way.
- Simplified declaration
- Clearance using the simplified declaration form for imported express goods, applicable to express goods with a dutiable value of NT$50,000 or less that are not excluded under Article 12 of the Sea Express or Air Express Cargo Clearance Regulations; category codes X1, X2 and X3.
- High-value express goods (X4)
- Imported express goods with a dutiable value over NT$50,000, which must be cleared on a standard import declaration under Article 12, Paragraph 1, Subparagraph 1 of the Sea Express Cargo Clearance Regulations.
- Dutiable value
- The basis on which Customs calculates customs duty and business tax; it is based on the transaction value of the imported goods and includes freight, loading/unloading and handling charges, and insurance up to the port of importation (Article 29 of the Customs Act).
- Deduction copy of the customs-collected business tax payment certificate
- The copy of the payment certificate issued after Customs collects business tax at import that businesses use to claim input tax credits (海關代徵營業稅繳納證扣抵聯); it is one of the tax refund and credit documents listed in Article 38, Paragraph 1, Subparagraph 2 of the Enforcement Rules of the Business Tax Act.
- Importer/exporter registration
- Registration of a company or firm with the International Trade Administration, MOEA; under Article 9 of the Foreign Trade Act, those registered as importers/exporters may engage in import and export business.
- Input tax credit
- A business offsets the business tax it paid when buying goods or services, as shown on valid documents (input tax), against the business tax it collects on sales (output tax); business tax collected by Customs on imported goods also counts, but input tax on purchases not used for the main and ancillary business may not be credited (Articles 19 and 33 of the Business Tax Act).
- Import regulations (licensing and inspection codes)
- Import control codes listed for a CCC tariff code, indicating from which competent authority a permit, inspection or verification document must be obtained before declaration; a blank column means there are no special import regulations.
Official legal sources
The following legal provisions were all checked against the original texts in the Laws & Regulations Database of the R.O.C. (Taiwan) on 2026-09-17: Sea Express Cargo Clearance Regulations (Articles 11, 12, 15, 18 and 30, as amended on ROC 115/2/23, i.e. 2026-02-23); Customs Act (Articles 17, 22, 29 and 43); Value-added and Non-value-added Business Tax Act (Articles 9, 10, 19, 20, 25, 33 and 41); Enforcement Rules of the Value-added and Non-value-added Business Tax Act (Articles 29, 30 and 38); Regulations Governing the Use of Uniform Invoices (Articles 7 and 8); Regulations Governing the Assessment of Profit-seeking Enterprise Income Tax (Articles 45, 75 and 90); Foreign Trade Act (Articles 9 and 21); Regulations Governing the Establishment and Administration of Customs Brokers (Article 12); Commodity Tax Act (Article 18). For filing periods, see also the National Taxation Bureau of Kaohsiung press release of 2020-06-02. The X1–X4 codes are set out in the second point of the Operational Directions for Simplified Declaration and Customs Clearance of Air Express Cargo. The latest rules of the competent authorities and actual processing results prevail.
Official Explanations and Press Releases
- Documents Required for Import Declarations (FAQ)
- Real-name Authentication for Express Consignees, FAQ Q11: Real-name Authentication for Companies and Firms
- What Duties and Fees Are Payable on Imported Goods? (FAQ)
- How Are Imported Goods Taxed and Released? (FAQ)
- Operational Directions for Customs Clearance of Sea Express Cargo (海運快遞貨物通關作業規定)
- Operational Directions for Simplified Declaration and Customs Clearance of Air Express Cargo
- Sea Express Cross-border Online Shopping Notice
- Air Express Cargo Tax Bills Now Available for Lookup and Download Without a Certificate (Press Release)
- Notes on Online Transactions (Imports)
- Online Customs Brokerage Authorization via the Customs-Port-Trade Single Window: Convenient and Secure Clearance (Press Release)
- Businesses Using E-invoices Can Download Import Duty and Tax Payment Documents with a MOEA Business Certificate (Press Release)
- Trade Promotion Service Fee (FAQ)
- What Should Profit-seeking Enterprises Note When Reporting Tax Expenses? (Q&A 2247: Customs Duty on Imported Goods Shall Be Included in the Cost of the Goods)
- Which Input Taxes May Not Be Credited Against Output Tax? (Q&A 9301)
- Do Businesses Taxed on an Assessed Basis Need to Keep Purchase Documents, and What Are the Benefits? (Q&A 9303)
- Regulations Governing the Use of Uniform Invoices (Article 7: e-invoice receipt files; Article 8, Paragraph 3: collection and pass-through of payments)
- Legislative Yuan Gazette Vol. 114, No. 36 (Finance Committee minutes of 2025-04-10: Q&A on studying the low-value exemption, and ad hoc motion)
- Legislative Yuan Gazette Vol. 114, No. 38 (Finance Committee minutes of 2025-04-16: Q&A on studying the low-value exemption)
This page provides general information; legal provisions have been checked against the original texts in the Laws & Regulations Database of the R.O.C. (Taiwan). HowBridge’s service rules (declaration fee, payment and delivery methods) are as shown on screen when the consolidation order is submitted. Tariff classification, import regulations and tax amounts for individual goods are determined by the Customs office handling the declaration; for accounting and tax treatment, please follow the advice of your company’s accountant.
Related Reading
How to read an import declaration: business tax input credit guide
Importer/exporter registration guide
Simplified declaration (X forms) and the ten exclusions
Import permit overview and licensing codes
Commercial sea express: import solutions for sellers and companies
Long-term customs brokerage authorization online
E-invoice guide
Leave company imports to HowBridge: formal declaration, taxes collected and paid on your behalf, and e-invoices in one place
First add a company declarant in the Member Center and confirm that “Customs-qualified” is shown; once the goods reach the Shenzhen consolidation warehouse, choose formal declaration and upload the invoice + packing list and power of attorney.
Go to the Member Center to add a company declarant →