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Taiwan VAT on B2C e-services

  • Dec 17, 2016 | Richard Asquith

Taiwan VAT on B2C e-services

Taiwan’s parliament (Yuan) has passed a law levying VAT on electronic services sold to consumers by non-resident providers.  There is limited clarity of the range of service subject to VAT, but it will include downloads, Apps, ebooks and online car-sharing services etc.

Providers will have to form a permanent establish in Taiwan to pay any collected tax, or appoint a resident tax agent. Details of filing arrangements will be provided in early 2017.  Generally, VAT filings are bi-monthly in Taiwan, and there is no VAT registration threshold. The current VAT rate in Taiwan is 5%.

The change brings the country into line with similar VAT charges in the EU, Japan, India, South Korea, South Africa and New Zealand. Russia it to impose VAT on foreign providers from 1 January 2017. Australia will introduce a similar regime later in 2017.

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.