Medical institutions that sell goods or services that are not related to medical business should register for tax status and pay business tax

If a medical institution sells health food, cosmetics, glasses, etc. that are not related to medical business, since it is a general commercial activity, it should register for tax and pay business tax for the sales of goods or services.

The Kaohsiung National Taxation Bureau of the Ministry of Finance stated that according to Article 1 of the Value-Added and Non-Value-Added Business Tax Act, the sale of goods or services within the territory of the Republic of China shall be subject to business tax in accordance with the law; Article 8, Paragraph 1, Item 3 of the same act stipulates that medical services, medicines, ward accommodation and meals provided by hospitals, clinics and sanatoriums are exempt from business tax. Therefore, medical institutions that sell goods or services that are not related to medical business should register for tax and be subject to business tax in accordance with the law.

The bureau gave an example. Xiaomei went to Ophthalmology Clinic A for treatment. In addition to paying the medical fees, she also bought health foods and glasses from the clinic. Since the sale of health foods and glasses is a general commercial behavior, if Ophthalmology Clinic A did not register for tax as required, when it was discovered, in addition to paying additional business tax, it should also be fined in accordance with relevant regulations.

The Bureau specifically reminds that medical institutions that provide goods and services outside the scope of medical business should promptly register for taxation and pay business tax with the competent national tax bureau; before being reported or investigated by the tax collection agency or the Ministry of Finance’s designated investigators, they should automatically report and pay the unpaid taxes to the competent national tax bureau, and waive penalties even if interest is added in accordance with Article 48-1 of the Tax Collection Act. If you have any questions about the above regulations, you can call the National Tax Bureau's toll-free service number 0800-000-321 for inquiries or go to the bureau's website (https://www.ntbk.gov.tw) and use the National Tax Bureau's smart customer service "National Tax Bureau Assistant" for online inquiries.

Provided by: Sales Tax Group
Contact Person: Li Suqiu, Section Chief Tel: (07)7256600 ext. 7370
Written by: Li Chunya Contact number: (07)7256600 ext. 7381