Newsletter
DISTRIBUTORS OBTAINING GOVERNMENT UNIFORM INVOICES FROM SUPPLIERS AFTER AGREED SETTLEMENT DATE
In 1988, the Ministry of Finance (MOF) issued a tax ruling on the issuance of the government uniform invoice (GUI) for the sale of suppliers' products on distributores' premises. According to the tax ruling, where the distributor is a department store and meets certain criteria, the distributor may apply for the tax authorities' permission to issue its own GUIs to customers for purchasing a supplier's products, and have the supplier issue GUIs to the distributor for such sales on the day following the date of settlement as agreed between the supplier and the distributor.
Because of the increasing number of distributors that are not department stores are issuing their own GUIs to customers without obtaining the suppliers' GUIs for the sale of the suppliers' products, the MOF issued another tax ruling on this subject on 19 March 2009, which states that a distributor, regardless of whether or not it is a department store, as long as the distributor files its income tax return using the blue form or has its income tax return duly audited by a certified public accountant, and has no outstanding business tax or fine, may, by submitting relevant documents including a copy each of the agreements between itself and the respective suppliers, apply for the tax authorities' permission to obtain GUIs from suppliers for products sold on the day following the settlement date agreed on between the distributor and the respective suppliers.
Unless and until the tax authorities grant the above-mentioned permission, a distributor is legally required to obtain GUIs from the supplier upon receiving the products from the suppliers pursuant to the Time Table for the Issuance of GUIs.