Enforcement Rules of Value-added and Non-value-added Business Tax Act Article 47

The "deemed as sale of goods" as prescribed under Subparagraph 5, Paragraph 3 of Article 3 of the Act shall include goods confiscated and later auctioned or sold by the Customs, pledged collaterals, goods overdue for clearance, goods which failed to pay customs duty, or non-returnable goods. These "deemed as sale of goods" are not subject to Article 19.When the Customs auctions or sells goods that are subject to business tax, the Customs shall remit the business tax to the public treasury after the auction or sale is executed. Along with the auction or sale, the Customs shall provide a detailed statement describing the goods auctioned or sold to the purchaser as supporting documents for accounting and deduction purposes.With respect to goods auctioned or sold off by a court of execution or by an administrative enforcement organization, the court of execution or administrative enforcement organization shall, within five(5) days after the completion of said auction or permitted seizure of goods, notify the local competent tax authorities of the amount realized by auction or seizure, for them to assess the business tax and reply accordingly. The business tax so assessed shall be withheld by the court of execution or administrative enforcement organization.The preceding business tax shall be calculated in accordance with the assessment based on the amount realized by auction or seizure by the court of execution or administrative enforcement organization at the prescribed tax rate.The local competent tax authorities shall, after receiving the business tax withheld by the court of execution or administrative enforcement organization, fill in the notice of business tax due and remit it to the public treasury.