Tax rate by region Taiwan

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The information provided on this page is intended for general informative purposes only. It should not be interpreted as tax advice, nor is it meant to be. For advice on your particular tax responsibilities, consult with an experienced tax expert. PayPro Global does not assume any responsibility for any action taken or not taken based on the information presented here.

Taiwan applies a 5% Value-Added Tax (formally Business Tax) managed by the National Taxation Bureau (NTB) under the Ministry of Finance. For non-resident providers of cross-border digital services, compliance is triggered under a simplified regime once annual business-to-consumer (B2C) sales reach a statutory threshold of TWD 600,000.

Registered foreign digital vendors must report their transactions on a bi-monthly cycle, with electronic returns and tax payments due via the Taiwan e-Tax portal by the 15th day of the month following the end of each period. Furthermore, cross-border digital businesses must issue mandatory electronic Government Uniform Invoices (eGUI) for B2C transactions using formatted XML data transmitted directly to the Ministry of Finance’s central e-invoice platform.

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Taiwan

Taiwan introduced its Value-Added Tax (formally Business Tax) in 1986 under the Value-Added and Non-Value-Added Business Tax Act. Standard VAT rate is 5%.  Non-resident digital service providers must register once annual B2C sales reach TWD 600,000. 

Official government link: Ministry of Finance (MOF), through the National Taxation Bureau (NTB)

5.00%

E-products and services VAT/Sales tax rate

Tax applicable for

B2B and B2C

Reverse charge mechanism for B2B sales

Yes

Tax ID validation required

Yes

When do you have to register

After TWD 600,000 in annual B2C sales 

Online registration possible

Yes 

Local representative needed

Not mandatory

Registration procedure

Register via Taiwan e-Tax portal under non-resident digital regime; receive BAN; configure eGUI issuance via MOF platform

List of digital and electronic services liable for tax

Services supplied via electronic platform

Digital products delivered electronically over the Internet — software, music, apps, e-books, streaming, online courses

Penalties

Late filing: 1% of tax due per 2 days overdue (within 30 days);

NT$1.200 (within 30 days late) or NT$3.000 (over 30 days late) even if no tax due;

failure to issue eGUI: NT$1.500–15.000 per violation

Registration threshold

NTD 600.000 

Filing interval

Bi-monthly

Filing deadline

15th day of the month following the end of the bi-monthly reporting period

E-invoicing requirements

Mandatory

Record keeping

5 years 

How-To Guides: Taiwan SaaS VAT

Step: 1 Threshold

Effective May 1, 2017, Taiwan requires non-resident vendors (including online platforms) of digital services to consumers (B2C) in Taiwan to register for and collect VAT if their sales exceed TWD 480,000 in a 12-month period.

Effective January 1, 2019, non-resident VAT registered digital services providers are required to issue government compliant e-invoices.

 

Effective April 7, 2025, Taiwan raised the VAT registration threshold for non-resident digital services providers from TWD 480,000 to TWD 600,000.

 

Registration is mandatory if B2C sales exceed this amount. (Note: Threshold increased from 480k to 600k in 2025).

Step: 2 Business Registration

Register via the eTax Portal (Ministry of Finance) under the “Simplified Registration for Cross-Border Electronic Services” scheme. No local fiscal representative is required for this simplified scheme.

Step: 3 TIN/VAT Number

Tax Registration Number. It is an 8-digit code assigned upon approval.

Step: 1 Standard Rate

Standard VAT (IVA) in Taiwan is 5%. 

Step: 2 Rate Formula

To calculate your tax amounts, use the following formula:

 

Tax Amount = Net Price x 5%

 

Step: 3 Reverse Charge (B2B)

Yes. Foreign suppliers generally do not charge VAT to Taiwanese business entities. The local business buyer accounts for VAT under the reverse charge mechanism (Article 36).

Step: 1 Selling B2C

Charge 5% VAT on digital services sold to individuals.

 

 

 

Step: 2 Selling B2B

Do not charge VAT if the buyer provides a valid 8-digit Unified Business Number (UBN). The buyer handles the tax.

Step: 3 Invoice Requirements

Cloud GUI (Mandatory):

 

Foreign suppliers selling B2C must issue Cloud Government Uniform Invoices (Cloud GUI).

• Must be issued within 48 hours of payment.
• Requires integration with a specialized “Value Added Center” (VAC) or Turnkey software to transmit data to the Ministry of Finance.
• Must notify customers via email for the “Receipt Lottery.”

Step: 1 Filing Interval

Taxes are filed bi-monthly

Step: 2 Filing Deadline

The filing deadline is by the 15th day of the odd month following the period (e.g., file Jan-Feb returns by March 15).

Step: 3 Submission

File electronically via the eTax Portal. Payment can be made via credit card (if supported) or international wire transfer.

Step: 4 Record Keeping

Records must be kept for 5 years.

PayPro Global Solution: Simplified Registration & Fiscal Representation

Navigating Taiwan’s VAT registration and fiscal representation can be daunting. PayPro Global acts as your Merchant of Record, handling these complexities, including VAT registration and fiscal representation where needed, so you can focus on your business.

Learn more about our MoR services.

FAQ

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