While we offer Fapiao management services for clients, we understand the importance of understanding this crucial aspect of Taiwanese business operations. Let's break down the guidance into step-by-step instructions.
Understanding Fapiao
There are two primary types of paper Fapiao:
Triplicate Fapiao (三聯式): Used for business-to-business (B2B) transactions. Requires complete buyer information, including company name and company tax ID number.
Duplicate Fapiao (二聯式): Used for business-to-consumer (B2C) transactions. Buyer information (name and ID) is optional.
Issuing a Triplicate Fapiao (B2B)
Let's focus on the Triplicate Fapiao in this article.
Identify the Fapiao Book: Ensure you're using the correct book by checking for "三聯式" on the cover.
Start with the First Serial Number: Each Fapiao book has a unique starting serial number. For instance, in the image, it's "BW 31288850."
Accurate Date and Serial Number Sequence: Always maintain a chronological order for both the date and serial number. Avoid issuing Fapiao out of sequence.
Fill in the Required Information (refer to the image for correct placement): A: Buyer's company name. B: Buyer's company tax ID (統一編號). C: Issue date. D: Product or service description E: Amount before tax. F: Total amount before tax. G: Tax type. "應稅" indicates VAT taxable (5% VAT of the total amount). H: Total amount with tax (calculated as F * 1.05). I: Total amount in Chinese “upper-case” characters. J: Apply your company's Fapiao stamp.
Additional Notes
The Triplicate Fapiao consists of three copies. Place carbon paper between the first (第一聯) and second (第二聯) sheets to ensure information is replicated on all copies.
Provide the second (第二聯) and third (第三聯) copies to the buyer. Retain the first copy (第一聯) for your records and VAT filing.
Taiwan has a standard 5% VAT, but certain goods and services are subject to Zero-Tax or Tax-Exempt. Refer to our case study article for more details.
Remember
If you make a mistake while filling out a paper Fapiao and need to start over, don't discard the sheets. Staple them together to preserve the serial number sequence. Every Fapiao sheet is numbered and must be accounted for in your records.
If you find the Fapiao process overwhelming, our team can help. Contact us for expert assistance!
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