Taiwan Updates Business Tax for Foreign Digital Services: VAT and Reporting Guidance

• Taiwan has updated its Business Tax law to confirm its tax obligations for certain non-resident providers of digital or electronic services to consumers.
• Business Tax covers 5% VAT and 2% Gross Business Receipts Tax.
• Non-resident digital services providers are subject to VAT if their annual sales exceed TWD 480,000.
• The Ministry of Finance has issued new reporting guidance for non-resident providers of digital and electronic services.
• The new guidance includes definitions on non-resident providers, VAT and income tax obligations, cloud invoice obligations, and tax implications for business taxpayers who buy from non-residents.

Source: vatcalc.com

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.

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