Taiwan: VAT amendments affecting e-commerce | KPMG Global
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Taiwan: VAT amendments affecting e-commerce are effective 1 May 2017

Taiwan: VAT amendments affecting e-commerce

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.


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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:

  • Foreign enterprises that have sales exceeding NTD480,000 must apply for a taxpayer ID and file bi-monthly VAT returns. 
  • There are new guidance items relating to the threshold amount, non-compliance penalties, and tax registration platform.
  • Foreign enterprises are not required to issue government uniform invoices during a transitional period that runs from 1 May 2017 to 31 December 2018.

KPMG observation

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

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