Commodities listed in this Act, whether manufactured domestically or imported from abroad shall be subject to commodity tax in accordance with this act except as otherwise provided by any other laws.

The taxpayer and the time of collection of the tax on the commodity tax are as follows:
1. In the case of a manufacturer of commodities, the taxpayer is the manufacturer, and the tax is collected upon release from the factory.
2. In the case of a manufacturer of commodities on a consign-process contract, the taxpayer is the manufacturer of the processed commodities, and the tax is collected upon release from the factory.
3. In the case of imported commodities, the taxpayer is the consignee or the holder of the bill of lading or of the commodities, and the tax is collected upon importation.
4. In the case of an auction or sale, by a court or other institution, of taxable commodities yet to be taxed, the taxpayer is the winning bidder, the purchaser, or the assumer of the commodities, and the tax is collected at the time of the auction or sale.
5. In the case of untaxed commodities that lose its tax-exempt status due to a transfer or a change in purpose of use, the taxpayer is the person initiating the transfer or the person who change the purpose of use, and the tax is collected at the time of the transfer or the change in purpose of use. However, in the event that the transferring party or the party that changes the purpose of use is unknown, the taxpayer is the holder of the commodities.
For the commodities prescribed in Subparagraph 2 of the preceding paragraph, if the consignor is a manufacturer of taxable commodities, the consignor can apply to the competent tax authority for taking the consignor as the taxpayer.
Taxable commodities deemed as “release from the factory” in any of the following conditions:
1. Commodities provided in the factory for consumption.
2. Commodities processed in the factory into non-taxable products.
3. Commodities in the factory transferred to another person except the case of an auction or sale by a court or other institution.
4. Commodities in stock when the manufacturer applies for de-registration.
5. Commodities yet to be taxed, destroyed or reduced in quantity for a reason other than fire, water or other uncontrollable calamity after transport to factories for processing, packing or storage in untaxed warehouses or in factories.

Commodities which meet any of the following conditions shall be exempt from Commodity tax:
1. Raw materials used for manufacturing other taxable commodities.
2. Export commodities.
3. Commodities for exhibition but not for sale.
4. Commodities donated for troop-cheering.
5. Commodities supplied directly for military use with the approval of the Ministry of National Defense.
The rules governing tax exemption as mentioned in the preceding paragraph shall be prescribed by the Ministry of Finance (hereinafter referred to as the MOF).

Commodity tax paid or recorded on account as paid on commodities shall be refunded the tax paid or offset the recorded account if meet any of the following conditions:
1. Export commodities.
2. Raw materials used for manufacturing export commodities.
3. Unsaleable commodities returned to factory for reprocessing or for refining into similar taxable commodities which are subject to commodity tax.
4. Unsaleable commodities for reason of damage. However, if the quantity of commodities is less than one tax unit or if the original tax payment certificate is lost, no tax will be refunded.
5. Commodities physically destroyed in transit or in storage by fire or water or other calamities beyond control.
The rules governing tax refund or offset as mentioned in the preceding paragraph shall be prescribed by the MOF.
Tax exempt commodities that are destroyed or reduced in quantity after importation or release from the factory for reasons other than that described in Subparagraph 5, Paragraph 1 shall be subject to commodity tax pursuant to this Act.