Amendments to the value added tax (VAT) law—that have an effective date of 1 May 2017—include measures providing that foreign enterprises selling e-commerce services to individual purchasers in Taiwan must register for VAT and must pay VAT directly or indirectly through an appointed tax agent.
Amended regulations governing this tax registration rule were released on 29 March 2017, in response to the VAT amendment regarding e-commerce transactions. Included in that guidance are the following items:
Taiwan’s Ministry of Finance is reportedly in the process of drafting detailed implementation rules as well as building out the reporting platform for purposes of the VAT registration rules. There still remain several areas that require further clarification, such as the rules for issuing invoices and application of the input tax credit.
Read an April 2017 report [PDF 342 KB] prepared by the KPMG member firm in Taiwan: Amendments to the VAT Act to include foreign e-commerce businesses come into effect
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.