Taiwanese VAT returns

Once registered for value added tax (VAT), businesses must declare all taxable transactions and remit any VAT due to the National Taxation Bureau (NTB) under the Ministry of Finance. 

Taiwan VAT returns are generally filed on a bi-monthly basis. 

• VAT-registered businesses must file one return every two months, covering two consecutive calendar months. 
• There is no routine monthly or quarterly VAT return cycle for standard VAT registrants.
• Filing frequency is prescribed by law and is not elective. 

The tax authorities confirm the bi-monthly filing obligation as part of the business tax registration process. 

Taiwan VAT returns must be submitted by the 15th day of the month following the end of the bi-monthly reporting period.

Payments of any VAT due must also be made by this same deadline.

For example, a VAT return covering January–February is generally due by 15 March.

If the due date falls on a weekend or public holiday, the deadline is typically moved to the next working day.    

VAT-registered businesses in Taiwan must maintain comprehensive tax and accounting records, including: 

• Uniform invoices issued and received (paper or electronic) 
• Sales and purchase records supporting VAT calculations 
• Import and export documentation 
• Accounting books and journals required under Taiwan accounting standards 
• Electronic records required for tax audits or reporting 

Records must generally be retained for at least five years and must be made available to the tax authorities upon request. 

VAT payments are due on the same date as the VAT return filing deadline (i.e., by the 15th day following the reporting period).

Late payments may result in: 

• Late payment surcharges 
• Interest charges 
• Administrative penalties imposed by the tax authorities 

Input VAT may generally be credited against output VAT where expenses are directly related to taxable business activities, including:

• Goods purchased for resale 
• Business equipment and capital assets 
• Professional services and operating costs 
• Import VAT paid on goods used in taxable activities 
• Pro rata deductions for mixed-use expenses where permitted 

To be deductible, input VAT must: 

• Be supported by valid uniform invoices 
• Be properly recorded in the business’s accounting records
• Relate to VAT-taxable (or zero-rated) activities  

Input VAT is not deductible for private expenses or expenses related solely to exempt or non-VAT business activities. 

All Taiwan VAT returns must be submitted electronically or in paper form, depending on the taxpayer’s registration status and filing method approved by the tax authorities. 

Most businesses file returns through the Ministry of Finance’s electronic filing systems or via authorised tax agents. 

VAT payments are made through designated banks or electronic payment channels approved by the Ministry of Finance. 

Penalties may apply for VAT noncompliance, including: 

• Fines for late or missing VAT returns 
• Late payment surcharges and interest 
• Penalties for incorrect, incomplete, or false filings 
• Additional sanctions for repeated or serious violations 

Penalty amounts and enforcement measures are prescribed under Taiwan’s tax laws and administrative guidance. 

If input VAT exceeds output VAT for a given reporting period, the resulting VAT credit may be: 

• Carried forward to offset future VAT liabilities, or 
• Refunded, subject to statutory conditions 

VAT refunds are generally available where excess input VAT arises from zero-rated supplies (such as exports). Refund claims are reviewed by the tax authorities, and processing times may vary depending on documentation and audit requirements.