Newsletter
ISSUANCE OF UNIFORM IN-VOICES FOR SALE OF SECU-RITY BY CREDITOR
When the courts or the customs authorities auc-tion or otherwise sell goods on which business tax is payable, they need not issue uniform in-voices, according to the Guidelines for the Levying of Business Tax on Auctions and Sales of Goods by Courts and Customs. To enable purchasers to nevertheless obtain receipts, the MOF stated in an interpretation dated 30 October 1996 that when a tax collection authority re-ceives a payment of business tax from a court, it should issue a "Statement of Payment of Busi-ness Tax Arising from a Court Auction or Sale of Goods," and pay the money directly into the National Treasury; if the purchaser is a business within the meaning of Chapter 4, Section 1 of the Business Tax Law, the "tax credit" copy should be delivered to the purchaser as proof of pay-ment.
When a creditor, to secure his rights, sells goods provided as security by a debtor in accordance with the Law on Transactions Secured by Mov-able Property, there is no mechanism for the tax collection authorities to be involved in the pay-ment of such business tax as may be due, as there is in the case of an auction by a court or customs. To resolve questions concerning the issuance of uniform invoices and the payment of business tax, the MOF stated in an interpretation dated 22 June 2001 that such sale should be regarded as a sale of goods on consignment as referred to in Article 3 Paragraph 3 Item 5 of the Business Tax Law, and that the creditor should issue a sales receipt to the purchaser.