Taiwanese VAT registration

In Taiwan, the requirement to register for value added tax (VAT) depends on whether a business carries out taxable business activities in Taiwan, rather than on a high turnover threshold.

• Resident businesses must register for Business Tax when they commence taxable operations in Taiwan. There is no general turnover threshold for VAT registration under the VAT-based business tax regime.
  
• Certain small businesses may be approved to apply the non-VAT (gross receipts) business tax regime instead of VAT, typically subject to industry type and approval by the tax authorities.
  
• Nonresident businesses may be required to register for VAT if they carry out taxable activities in Taiwan through a fixed place of business, local agent, or other taxable presence.
  
• Foreign suppliers of digital services to Taiwanese customers may also have VAT registration and collection obligations, depending on the nature of the supply and whether a local agent is appointed.

As a result, VAT registration in Taiwan is generally required from the start of taxable activities, rather than after exceeding a revenue threshold.

Foreign businesses may need to register for VAT in Taiwan if they engage in activities such as: 

• Selling goods in Taiwan, including imports where the business acts as the importer of record 
• Providing services in Taiwan, including on-site services or services deemed supplied in Taiwan 
• Supplying digital services or electronically delivered content to Taiwan customers 
• Operating through a branch, representative office, or local agent in Taiwan 
• Holding inventory in Taiwan for sale or distribution 
• Running ecommerce operations that deliver taxable goods into Taiwan 

In practice, many nonresident businesses register through a local tax agent to meet Taiwan’s compliance requirements. 

To register for VAT in Taiwan, applicants (resident or nonresident) typically need to provide: 

• Completed business tax registration application submitted to the National Taxation Bureau (NTB) 
• Legal entity details: company name, legal form, country of incorporation, registered address 
• Details of the Taiwan business presence (branch, office, agent, or place of operations) 
• Description of business activities and expected taxable transactions in Taiwan
•  Identification details for directors, legal representatives, or appointed agents 
• Power of attorney for a Taiwan tax agent or representative (commonly required for foreign businesses)
•  Banking and contact details for tax correspondence 
   

Applications are filed with the relevant National Taxation Bureau under the Ministry of Finance. Registration should be completed before taxable supplies are made, as late registration may result in penalties. Once approved, the tax authority issues a Taiwan Business Tax registration number.

Registration timelines vary depending on the complexity of the business structure and whether a foreign entity is involved. 

Structure: Taiwan business tax registration numbers are issued as a uniform business number (UBN), typically an 8-digit numeric identifier. 

The UBN is used for VAT reporting, invoicing, customs filings, and interactions with Taiwan tax authorities. 

After registering for VAT (business tax) in Taiwan, businesses must comply with ongoing tax obligations, including: 

• Filing periodic business tax returns, typically on a bi-monthly basis 
• Charging and collecting VAT at the applicable Taiwan rates 
• Issuing government-approved uniform invoices, including electronic uniform invoices where applicable 
• Maintaining accounting and tax records in accordance with Taiwan law 
• Remitting VAT due by the statutory filing deadlines 

Failure to comply with Taiwan VAT requirements may result in penalties, interest charges, administrative fines, and enforcement action by the tax authorities.