2. Taxable Period

a. General

The taxable period for VAT is divided into two.

(1) First period: January 1 to June 30

(2) Second period: July 1 to December 31

b. Taxable period for newly-established businesses

The initial taxable period for any person establishing a new business shall be from the

starting date of the business to the last day of the taxable period on which the starting

date falls upon. Where registration is made prior to the commencement of business, the

taxable period begins with the date of registration. In many instances, the

commencement date of a business is set out in the Enforcement Regulations. For

example,

(1) manufacturing: the date when the manufacture of products begins;

(2) mining: the date when the mining or collecting of minerals begins; and

(3) others: the date when the supply of goods or services begins.

c. Taxable period for liquidating business

The last taxable period for any trader liquidating business shall be from the beginning

date of the taxable period upon which the closing falls to the date of closing.

d. Taxable period for a person eligible for simplified taxation who waives simplified taxation

The taxable period for this case shall be from the starting date of the taxable period on

which the date of return for the waiver of simplified taxation falls on the last day of such

return. The other taxable period shall be from the first date of the following month of the

month in which the date of return falls on the last day of the taxable period. These two

taxable periods are separate.