The Way of Issuing Uniform Invoice for Purchase on Behalf of a Third Party, Consigning Goods to Others for Sale and Collections and Payment Transfer

According to Value-added and Non-value-added Business Tax Act, circumstance that a business entity purchases goods under its own name on behalf of a third party and delivers the goods to the third party, or consigns goods to others for sale or sells the consigned goods shall be deemed as a sale of goods.

1. Purchase on behalf of a third party: Business entities providing purchase agency services shall issue a uniform invoice for the service charges, and shall in addition thereto, issue a separate uniform invoice in the amount of the actual purchasing price for the goods acquired with the words “purchase under agency” indicated, and shall deliver said invoices to the consignor upon delivery of the goods.

2. Consign goods to others for sale: Business entities consigning goods to an agent for selling shall issue a uniform invoice in the amount of the selling price agreed upon by both parties in the contract upon goods delivery and shall indicate “selling under consignment” on said invoice to the business entity engaged for the consigned selling activity as purchase voucher.

Business entities undertaking the selling of the consignments shall issue a uniform invoice in the amount of selling price agreed upon by both parties in the contract to the buyer with “selling under consignment” indicated on said invoice upon conclusion of the transaction.

The business entities undertaking the selling of the consignments as set forth under the preceding paragraph shall issue a uniform invoice and an account settlement statement for the amount of service charges or commissions receivable according to the goods sold and the time limit for settlement of the account stated in the contract and shall indicate the names, quantities, unit prices, total amounts, and selling dates of goods were sold and the numbers of the uniform invoices issued to the consignor. Said account settlement period shall not exceed two (2) months.

3. Collections and payment transfer: If a business entity is entrusted by its customer to collect and transfer payment, it may give the payment receipt to its customer without issuing a uniform invoice or including the amount thus collected in its reported sales, provided there is no difference between the amount collected and paid, and the payment receipt indicates the customer as buyer.