Reminder for Domestic Buyers on Cloud Invoices and VAT for Overseas E-commerce Services

Domestic buyers purchasing electronic services from foreign e-commerce must obtain cloud invoices or self-report business tax
The Ministry of Finance states that with the growth of the digital economy, domestic buyers increasingly purchase electronic services from foreign e-commerce without a fixed business location in the country
To ensure tax fairness, since May 1, 2017, a value-added business tax system has been implemented for cross-border electronic service transactions
Foreign e-commerce must register for tax, issue cloud invoices, and report business tax for sales to domestic individuals
Domestic individuals should keep a correct email address to receive cloud invoices from foreign e-commerce
For sales to domestic non-individuals, the buyer must calculate and pay the business tax
If foreign e-commerce sales exceed a certain threshold, they must register for tax and issue cloud invoices
Domestic non-individuals buying electronic services must calculate and pay business tax unless exempted
The Ministry of Finance advises reporting any foreign e-commerce not issuing cloud invoices as required
Domestic non-individuals should report and pay any unpaid taxes before being investigated to avoid penalties

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.