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Summary

Standard VAT rate: 5%
E-Invoicing: mandatory for B2G transactions
Reporting type: real-time to eGUI system
Digital service tax: yes

Compliance and rates

 

VAT number format

VAT number in Taiwan contains of 8 digits (e.g. 01234567)

 

VAT rates

The standard VAT rate in Taiwan is 5%.

5% (Standard) – Applies to all taxable supplies, with certain exceptions

0% (Zero) – Exportations

Taiwan has special VAT, called GBRT for various services:

  • 15% (higher rate) – entertainment and restaurants
  • 25% (higher rate) – female meeting services
  • 3% (reduced) – foreign investment company services
  • 2% (reduced) – financial services
  • 1% (reduced) – reinsurance services.

 

VAT payments and returns

All businesses with Taiwanese VAT number must submit periodic VAT reports and payments.

VAT Returns frequency

Taiwan requires bimonthly tax return on a prescribed form for its sales amount and tax payable or overpaid of the preceding two months together with tax deduction and other appropriate documents with the competent tax authority prior to the fifteenth day of the following period.

 

Penalties in case of late filings or misdeclarations
  • Non compliance with tax regulations will trigger a fines of between NT$1,500 (EUR 45) and NT$15,000 (EUR 450).
  • Non-submission and late submission of tax statement will trigger a penalty of between NT$3,000 (EUR 90) and NT$30,000 (EUR 900).

 

Invoice requirements

According to Regulations Governing the Use of Uniform Invoices, article 9, business entities shall provide:

  • the alphabetical letters and numbers of the uniform invoice
  • date of invoice issuance
  • full description of goods and services provided
  • quantity of goods and services provided
  • net price per unit
  • item subtotal
  • sales amount
  • rate and amount of VAT applicable for the category of goods and services provided
  • the invoice total, gross amount

Non-compliance with invoicing regulations will trigger a fine of between NT$3,000 (EUR 90) and NT$30,000 (EUR 900), and 1% of the sales amount on the uniform invoice.

 

E-Invoicing

Taiwanese government introduced mandatory electronic invoicing for all B2G transactions. Electronic invoicing in B2B and B2C is not mandatory at this moment.

GUI – Electronic uniform invoices The uses of uniform invoices are as follows:

  • The retention media file is retained by the invoice issuer.
  • The receipt media file is given to the purchaser as receipt. If the purchaser is a business entity, it could be used as an accounting voucher and for tax deduction or reduction declarations pursuant to the provisions of the Act.
  • The certification media file is transmitted to E-Invoice Platform of MOF (hereafter called “the Platform”) by the invoice issuer as certification.
Obtaining GUI

When purchasing uniform invoices for the first time, business entities shall file an application with the competent tax authority for the issuance of a uniform invoice purchase certificate. The purchase certificates are required to be stamped with the unique uniform invoice seal of the entity.

The unique uniform invoice seal shall contain the name, the uniform serial number, and the address of the business entity, as well as the words “Uniform Invoice Seal”. The uniform serial number number thereon shall be engraved in arabic numerals using standard No. 5 font size in bold face.

Electronic invoices must be logged with the MoF Platform with the appropriate eGUI number no later than 48 hours after the transaction.

 

Real-time reporting

When Business entities sell goods or services and issues and transmits electronic uniform invoices, they have to upload the information of uniform invoices to the E-Invoice Platform of the Ministry of Finance.

eGUI numbers must be requested for every bi-monthly reporting period(bi-monthly tax report must match e-invoices sent via Platform).

 

Digital Service Tax (DST)

A foreign enterprise, institution, group, or organization having no fixed place of business within the territory of the R.O.C. selling electronic services to domestic individuals shall be the taxpayer of the business tax(VAT).

Non-resident providers must register with the tax authorities directly or via a local tax agent.

Standard tax rate of 5% is applied.

Turnkey invoice compliance.

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