Video Tutorials・Legal Tax Savings・2026-07-16・Last updated:
Many e-commerce and group-buying business owners assume it makes no difference whose name is used for an import declaration—but it makes a significant difference. As HowBridge's founder explains in the video, this decision could affect your annual tax bill by tens of thousands of dollars. Any goods imported from mainland China can be declared under a company or sole proprietorship. The resulting customs tax bill—the business tax payment certificate issued by Customs—serves as valid input tax documentation, allowing you to claim the 5% business tax as an input tax credit. If the goods are imported under an individual's name, that tax can never be recovered. This guide explains the principles, process, and potential pitfalls.
Key points in 30 seconds: When goods are imported, Customs collects 5% business tax on behalf of the tax authority under Article 41 of the Value-added and Non-value-added Business Tax Act. If the import is formally declared with a company or sole proprietorship identified by its Unified Business Number as the taxpayer, the business receives the “deduction copy” of the business tax payment certificate issued by Customs. Under Article 33 of the Value-added and Non-value-added Business Tax Act, this is valid input tax documentation that may be used to offset output tax when filing a business tax return. Even IT products subject to 0% customs duty, such as laptops, are still subject to the 5% business tax, which can be claimed as an input tax credit. Businesses that regularly import goods for resale under an individual's name cannot claim the tax credit and may also risk being deemed to have evaded taxes. Under Article 37 of the Customs Anti-smuggling Act, false declarations may result in a fine of up to 5 times the amount of tax evaded.
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Any goods imported from mainland China into Taiwan can be declared under a company or sole proprietorship, allowing you to legally obtain a customs tax bill as input tax documentation #TaiwanDedicatedShipping #HowBridge
This video dispels a common misconception: formal customs clearance is not reserved for large companies. As long as you have a registered company or sole proprietorship with a Unified Business Number, you can declare any goods imported from mainland China under that business—and you should, because the name shown on the tax bill determines whether the 5% business tax is merely a cost or an input tax credit you can recover.
For sellers who source goods from Taobao or 1688 every month, this is one of the most basic yet frequently overlooked ways to reduce taxes legally: simply use the correct importer identity, without changing anything else, and you can reduce the tax you owe.
Business tax at the import stage is collected by Customs on behalf of the tax authority under Article 41 of the Value-added and Non-value-added Business Tax Act. When a business files its business tax return, Article 33 of the Value-added and Non-value-added Business Tax Act recognizes three main categories of documentation that may be used to offset output tax. The third category expressly includes “the deduction copy of a business tax payment certificate issued by Customs that states the amount of business tax paid”.
The process is therefore as follows: declare the import under a company or sole proprietorship → Customs determines the customs value, assesses customs duty, and collects 5% business tax → obtain the deduction copy of the tax bill bearing the Unified Business Number → claim the credit when filing the business tax return for the applicable period, or within the prescribed time limit. The business tax shown on the tax bill is deducted directly from the output tax you owe.
Even Goods Subject to 0% Customs Duty Are Worth Declaring Formally：Most IT products, including laptops and desktop computers, are subject to 0% import duty, but Customs still collects 5% business tax. If you declare the import under a company or sole proprietorship, that 5% becomes input tax. If you declare it under an individual, the tax cannot be recovered. The higher the equipment's value, the greater the difference.
Imports Under an Individual's Name Are Not Eligible for Input Tax Credits：When an import is authenticated through an individual's EZWay account, the tax bill is issued under that person's national identification number and does not qualify as valid documentation for an input tax credit under Article 33 of the Value-added and Non-value-added Business Tax Act. You cannot later transfer the individual's tax bill to a company and use it to claim a credit.
Declaring imports under a company or sole proprietorship is simpler than many people expect. The key is to prepare complete documentation and declare all information accurately:
HowBridge Makes It as Simple as Selecting an Option：The HowBridge platform allows members to declare imports using a company or sole proprietorship's Unified Business Number. The number is automatically applied during batch customs declarations, and tax bills can be tracked shipment by shipment. The dashboard clearly shows which shipments already have tax bills and which are still awaiting import, helping ensure that no deduction copy is overlooked.
Importing under an individual's name may be more convenient, but it is only appropriate for small quantities intended for personal use. Regularly and frequently importing goods for resale is, by its nature, a business activity:
Tax Risks：Being unable to recover input tax is only a minor concern. If a business has not completed tax registration, issued invoices, or reported and paid business tax on its revenue, an investigation may result in back taxes plus fines. False declarations of product descriptions, prices, or quantities may also violate Article 37 of the Customs Anti-smuggling Act, resulting in a fine of up to 5 times the amount of tax evaded, as well as possible confiscation of the goods.
Customs Clearance Risks：Simplified declarations for individuals are subject to the NT$2,000 duty-free threshold and a limit of 6 times within a six-month period, pursuant to the public notice authorized under Article 49, Paragraph 2 of the Customs Act. Larger volumes quickly exceed these limits. Splitting declarations among other people's identities is even riskier, and both Customs and the National Taxation Bureau can identify this activity.
The Correct Approach：Use personal EZWay clearance for small quantities intended for personal use. Goods imported for business purposes should always be formally declared under a company or sole proprietorship. The compliant approach is actually more cost-effective: taxes can be credited, records remain auditable, and shipments clear more reliably.
A sole proprietorship that has completed tax registration and uses Government Uniform Invoices is considered a business entity under the Value-added and Non-value-added Business Tax Act. The deduction copy of a customs tax bill issued for an import declared under the sole proprietorship's Unified Business Number is therefore also eligible for an input tax credit. In principle, a small business subject to the assessed 1% tax rate does not issue invoices and has no input tax credit mechanism. This should be considered when deciding between the 1% and 5% tax systems.
Businesses that import goods regularly should complete their Registration of Exporters/Importers with the International Trade Administration, Ministry of Economic Affairs. Registration is free, can be completed online, and is usually approved quickly. Businesses without registration may handle occasional imports in accordance with the applicable rules, but those sourcing goods regularly are strongly advised to register so that their rights and obligations are clearly established.
Yes. The key is to designate the company or sole proprietorship as the taxpayer on the customs declaration. HowBridge allows members to save a company or sole proprietorship's Unified Business Number, apply it directly to batch customs declarations, and track the tax bill for each shipment, making it easier for accountants to claim the corresponding input tax credits.
Simplified courier declarations are primarily designed for low-value imports by individuals. To reliably obtain a tax bill that qualifies for an input tax credit, goods imported for business purposes should be filed through a formal customs declaration under a company or sole proprietorship. The appropriate declaration method and eligibility for input tax credits are subject to the current regulations of the Ministry of Finance and the Customs Administration. You may consult HowBridge customer service or your customs broker before shipping.
Input tax documentation must be reported and claimed within the prescribed period. In practice, the commonly applied maximum is within 10 years, provided the filing deadline has not otherwise expired, but it is always best to claim the credit as early as possible. If a tax bill is lost, you may apply to Customs for a replacement certificate. The safest practice is to file the documents immediately after each import is cleared and the taxes are paid, then give them to your accountant for the same filing period.
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This article is based on publicly available laws, regulations, and official information, including the Value-added and Non-value-added Business Tax Act and the Customs Act. It is provided for general reference only and does not constitute tax advice for any specific case. Declaration methods, eligibility for input tax credits, and applicable deadlines are subject to the latest regulations issued by the Ministry of Finance and the Customs Administration. Consult a certified public accountant or professional customs broker when necessary.
Want to Declare Imports Under Your Company's Unified Business Number Without Missing a Single Tax Bill? HowBridge supports batch declarations using a company or sole proprietorship's Unified Business Number and tracks tax bills shipment by shipment—helping you legally recover the 5% business tax while keeping your accounting records accurate and complete. Register for Free・Get Your Freight Forwarding Warehouse Address