Taiwan operates a value-added tax (VAT) system formally referred to as Business Tax. Taiwan introduced its VAT-based business tax in 1986 as part of a broader reform to modernise its indirect tax framework. The VAT system applies nationwide and is supplemented by a non-VAT business tax regime for certain industries.
Taiwan VAT is governed primarily by the Value-Added and Non-Value-Added Business Tax Act and related regulations, and is administered by the Ministry of Finance (MOF) through the National Taxation Bureau (NTB). The tax authorities are responsible for issuing guidance, managing VAT registrations and filings, overseeing invoicing and reporting requirements, and enforcing compliance with Taiwan’s VAT laws.
Businesses carrying out taxable activities in Taiwan — whether resident or nonresident — must comply with Taiwan VAT obligations. This includes registering for business tax when required, applying the appropriate VAT rates, issuing government-compliant uniform invoices, maintaining accounting and tax records, and filing periodic VAT returns in accordance with Taiwan tax rules.
