When preparing for a business, there are often many expenses for purchasing equipment or interior design.
According to the Value-Added Tax Law, the deduction of the input tax amount is allowed only for those who apply for business registration within a certain period of time.
Therefore, the input tax amount incurred before business registration is generally not deductible 🙅🏻♀️
However, if you apply for business registration within the specified period and the input tax amount does not fall under the non-deductible items, all business-related input tax amounts can be deducted.
What are the non-deductible items for input tax?
💡 When should I apply for business registration?
As a principle, business registration should be done before starting the business or within 20 days from the start date of the business.
To reduce the burden of value-added tax by receiving the input tax deduction, you should apply for business registration within 20 days after the end of the taxable period in which the supply date falls.
The taxable period is divided into two periods: the first half of the year (January 1 to June 30) and the second half (July 1 to December 31).
For the input tax amount incurred in the first half of the year, you can claim deduction until July 20th.
For the input tax amount incurred in the second half of the year, you can claim deduction until January 20th of the following year.
By applying for business registration, you can deduct the input tax amount incurred during the corresponding period 😃
When preparing for a business, there are often many expenses for purchasing equipment or interior design.
According to the Value-Added Tax Law, the deduction of the input tax amount is allowed only for those who apply for business registration within a certain period of time.
Therefore, the input tax amount incurred before business registration is generally not deductible 🙅🏻♀️
However, if you apply for business registration within the specified period and the input tax amount does not fall under the non-deductible items, all business-related input tax amounts can be deducted.
What are the non-deductible items for input tax?
💡 When should I apply for business registration?
As a principle, business registration should be done before starting the business or within 20 days from the start date of the business.
To reduce the burden of value-added tax by receiving the input tax deduction, you should apply for business registration within 20 days after the end of the taxable period in which the supply date falls.
The taxable period is divided into two periods: the first half of the year (January 1 to June 30) and the second half (July 1 to December 31).
For the input tax amount incurred in the first half of the year, you can claim deduction until July 20th.
For the input tax amount incurred in the second half of the year, you can claim deduction until January 20th of the following year.
By applying for business registration, you can deduct the input tax amount incurred during the corresponding period 😃