Taiwanese VAT returns

VAT registered traders must file regular returns with the Taiwanese Tax Authority.

How often are Taiwanese VAT returns required?

The VAT return filing frequency is generally every two months. Businesses with regular VAT credits, for example if providing zero-rated supplies, may file monthly. Returns are due by the 15th of the month following the reporting period.

Returns are filed electronically, and any VAT due should be paid simultaneously.

Rules on Taiwanese VAT deductions

Tax payers may reduce the VAT they must remit from their sales (output VAT) by any allowable VAT incurred on supplier invoices paid (input VAT) in the provision of taxable supplies. This includes import VAT charged on the arrival of goods into Taiwan.

VAT incurred on capital goods may also be deducted. However, any assets not used wholly or partially for the purposes of a taxable supply are excluded. Costs incurred for individual employees are also excluded.

Pre-registration VAT suffered may not be recovered.

Taiwanese VAT Recovery by non-residents

With the exception of B2C digital services, non-resident tax payers may not apply for VAT registrations.

They may reclaim some VAT incurred through participating in trade shows or business travel. VAT refunds generally take two months to be processed. Total VAT claimed must be above TWD5,000 per annum.

What are the deadlines for Taiwanese VAT return filing and payment?

VAT returns must be submitted by the 15th of the month following the reporting period end.  Any VAT due should be remitted at the same time.

Reclaiming Taiwanese VAT credits

Tax credits, where the input VAT is in excess of the sales output VAT, are rolled over to the next VAT return. Credits will generally not be refunded.

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