Taiwanese VAT rates and compliance

Taiwanese VAT and GBRT rates

There are a range of VAT and Gross Business Receipts Tax (GBRT):

Taiwan VAT rates

Rate Type Which goods or services
5% Standard All other taxable goods and services
0% Zero Exports and related services; some goods and services associated with international transportation
0% Exempt Basic foodstuffs; sale of land; and a range of financial instruments
0.1% GBRT Agriculture
1% GBRT Small enterprises; reinsurance premiums
5% GBRT Financial services
15% GBRT Entertainment services at restaurants or nightclubs

VAT compliance

As a tax payer, VAT registered business must comply with the rules and record keeping requirements of the VAT Act. This includes invoice format and records.  VAT invoices and records must be stored for at least seven years.  Records may be stored electronically.

Time of supply

The period the VAT is due – time of supply or tax point – is generally at the time of delivery or cash payment of the goods.  For services, it is the time of cash settlement.  For installment payments, the VAT is due at the corresponding time of each payment.  VAT on advance payments are only liable when the delivery is performed.

Import VAT is due at the time of clearing the goods into Taiwan through customs.

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