Important Things to Watch Out for When Requesting Receipts: Common Mistakes Many People Make
A Receipt Without the Seller’s Name Is NOT Considered a Valid Business Expense!

A receipt or proof of payment that does not include the seller’s name, business establishment name, or tax identification number
cannot be used as a tax-deductible expense.
Even if the purchase actually took place, if the document does not comply with the requirements prescribed by law = the full amount may be subject to tax!

Relevant Laws

• Section 65 Ter of the Revenue Code
  Expenses without proper and reliable documentary evidence cannot be deducted when calculating net profit.
• Revenue Department Director-General’s Notification No. P.19
  Requires receipt documentation to include:
  • The seller’s name and address, or
  • The seller’s tax identification number

Real-Life Example

Company ABC purchases consumer goods from a local grocery store and receives a “cash receipt” without the seller’s name.
→ It cannot be used as a deductible expense for corporate income tax purposes.
→ The entire expense may be disallowed by the Revenue Department.

How to Prevent This

1. Check the receipt before making payment. Make sure it includes the seller’s name, address, or tax identification number.
2. If you are purchasing from a small shop that does not have a tax invoice system → ask the seller to handwrite their name and tax identification number on the receipt.
3. Avoid using pre-printed receipts that do not have a proper business header or sufficient details.
4. If you need to purchase goods from a local grocery store → it is advisable to use personal funds rather than paying through the company’s bank account.

Summary

A receipt without the seller’s name, address, or tax identification number = not a valid tax-deductible business expense.
Check your documents every time to ensure that your expenses can confidently pass an audit by the Revenue Department.