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.

Electronic services liable to Taiwanese VAT

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

Taiwanese e-service provider VAT registrations

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

Taiwanese e-service provider VAT compliance

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 15th of the month following the reporting period end.

Latest Taiwanese news

Taiwan e-invoice for foreign digital service providers

Oct 31, 2019  

Non-resident online sellers of digital services to Taiwanese consumers will be required to issue cloud-based government uniform invoices (GUI) from 1 January 2020. These are a form of government

Taiwan B2C foreign e-services

August 11, 2017

Taiwan has confirmed that the Value Added Tax registration threshold for non-resident suppliers of electronic services to consumers is Taiwanese $480,000 per annum. Since...

Taiwan VAT B2C e-services May 2017

March 29, 2017

Taiwan has confirmed that it will begin to levy 5% VAT on electronic services provided to consumers by foreign providers.  This brings the country...