- This is a guide for businesses with customers in Taiwan regarding Value Added Tax (VAT).
- Taiwan has two types of business tax: VAT and Gross Business Receipts Tax (GBRT).
- The standard VAT rate is 5%, with some exemptions.
- GBRT applies to specific industries and the rate depends on the entity type and type of supply. There is no registration threshold for domestic or non-established sellers, but non-resident suppliers of Digital Services must register if their annual turnover exceeds TWD 480,000.
- The format of the Tax ID Number (TIN) varies for individuals based on their nationality and registration status.
- Taiwan has implemented a VAT obligation for cross-border sales of business-to-consumer electronic services, with a 5% VAT rate.
- Foreign sellers must register for VAT purposes, file VAT returns, and pay VAT if their annual sales exceed TWD 480,000.
- Digital services that fall within this obligation include downloadable services, online services, and services ordered online but delivered in a physical location in Taiwan.
Source Fonoa
See also
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