Taiwanese VAT rates and VAT compliance

Businesses registered for VAT in Taiwan must apply the correct business tax treatment to taxable supplies and remit the tax to the NTB by submitting periodic VAT returns.

VAT-registered businesses in Taiwan must file bi-monthly VAT returns.
 

Returns include:
 

• Output VAT charged on taxable supplies
• Creditable input VAT on eligible business purchases
   

Returns are submitted to the National Taxation Bureau, generally through electronic filing systems. In addition to VAT returns, businesses may also be required to comply with:
 

• Uniform invoice reporting
• Supporting documentation requirements for audits or refund claims

Get more information on VAT returns in Taiwan.

Foreign businesses storing goods in Taiwan must consider VAT registration and compliance obligations.
 

• Holding inventory in Taiwan for sale or distribution may constitute a taxable presence.
• Imports of goods into Taiwan are subject to VAT at the point of customs clearance, typically payable by the importer of record.
• Taiwan does not operate a call-off stock or consignment simplification regime comparable to EU systems.

VAT is generally payable on the importation of goods into Taiwan.
 

• Import VAT is usually paid at customs clearance.
• VAT-registered businesses may recover import VAT as input VAT if the goods are used in taxable activities and proper documentation is maintained.
• Taiwan does not operate a postponed import VAT accounting system.

Taiwan applies VAT to digital and electronically supplied services, including those supplied by foreign providers.
 

• Digital services may include streaming services, SaaS, online platforms, apps, and digital content.
• Foreign digital service providers may be required to register, charge 5% VAT, and file VAT returns, often through a local tax agent.
• Specific administrative rules apply depending on whether the supplier has a fixed place of business or appoints a local representative.

VAT-registered businesses may generally recover VAT incurred on taxable business expenses by crediting input VAT against output VAT in their VAT returns.
 

Taiwan does not operate a standalone VAT refund scheme comparable to EU nonresident refund procedures. VAT recovery is typically achieved through registration and ongoing compliance.
 

Excess VAT credits may be:
 

• Carried forward to offset future VAT liabilities, or
• Refunded, particularly where excess VAT arises from zero-rated supplies (such as exports)

Exports of goods and certain services supplied to customers outside Taiwan are generally zero-rated for VAT purposes. Zero-rating allows suppliers to charge 0% VAT while retaining the right to recover related input VAT, provided documentary requirements are met.

Taiwan does not operate an Intrastat-style system. Trade in goods is monitored through customs import and export declarations filed with Taiwan’s customs authorities and the Ministry of Finance.

Taiwan operates a government-controlled uniform invoice system for VAT purposes.

VAT-compliant invoices must:
 

• Be issued using government-approved uniform invoice formats
• Include the seller’s uniform business number (UBN), transaction details, and VAT amount
• Be reported to the tax authorities (paper or electronic, depending on the invoicing method)
   

Time of supply rules:
 

• Goods and services: VAT is generally triggered at the time the uniform invoice is issued.
• Imports: VAT is due at customs clearance.

VAT and accounting records must generally be retained for at least five years. Bi-monthly VAT returns and payments are generally due by the 15th day of the month following the reporting period.