Taiwanese VAT on e-services

Taiwan introduced VAT on electronic services providers to consumers by non-resident providers from May 2017. Domestic providers have been required to levy the indirect tax since May 2014.

Income from services subject to the consumption tax include:

• Online games
• Videos
• Music
• E-books
• Newspapers/journals
• Apps
• Membership websites
• Software and related hosting services

Non-residents are required to register in Taiwan when they pass the annual VAT registration threshold – NTD $480,000 per annum (approximately €13,700). The provider may VAT register through the Ministry of Finance’s web portal.

Information required includes:

• Company certificate of incorporation
• Country of residence
• Tax identification number
• Company contacts details
• Bank account details
• Date of commencement of services
• Tax Agent details, if applicable

Alternatively, VAT payers may use a local tax agent to register and file on their behalf.

Penalties for non-compliance will be between NTD3,000 and NTD30,000

The Ministry of Finance has indicated that providers will be excused from providing compliant invoices until 1 January 2019. In Taiwan, invoices with secure numbering are issued by the government for VAT registered business to use. This is done on a 2-month basis.

Returns must be submitted every two months, and the due date is the 15^th of the month following the reporting period end.