Companies registered in Taiwan, as well as those that are not registered in this country, but sell goods on the Taiwanese market have to register for VAT purposes in this country.
In the case of those opening a company in Taiwan that must be registered for VAT, there is no statutory threshold at which the registration is compulsory. The steps for VAT registration in Taiwan have to be completed during the incorporation formalities of the company.
| Quick facts | |
|---|---|
| Standard VAT rate | 5% |
Reduced rate of 0% | – export, – international transportation goods/services |
VAT-exempt goods/services | – essential foods, – sale of land, – hospital and educational services, etc. |
| Gross Business Receipts Tax (GBRT) – characteristics | A variable tax applied only to specific industries (financial services, restaurants, agriculture, etc.). |
| VAT registration threshold for e-commerce operators | If the annual sales in Taiwan exceed NTD 480,000 |
| Time frame for registration | VAT registration is generally done at the time of company registration in Taiwan. |
| Post-registration steps | Our company formation specialist will collect the Government Uniform Invoice (GUI) books required for legal compliance. |
| VAT number format | Consists of 8 digits |
| Authority overseeing VAT registration | National Taxation Bureau (NTB) under the Ministry of Finance |
| VAT de-registration situations | If the company ceases its operations or stops providing taxable goods or services. |
| VAT registration for sole traders | If they engage in selling taxable goods/services. |
| VAT registration for liaison offices (YES/NO) | NO |
| Failure to register for VAT | Fine ranging from NTD 1,000 to NTD 5,000 (approx.) |
| Invoice requirements | Only GUI books can be used for issuing invoices to customers. |
| Assistance | We can help you set up a company in Taiwan and register for VAT in order to comply with all tax regulations. |
Table of Contents
What is the VAT registration procedure for foreign businesses in Taiwan?
Once a foreign company becomes liable for the payment of the VAT, it must conduct the necessary steps for VAT registration in Taiwan:
- appoint or confirm the tax-filing agent, where applicable;
- prepare the company information and supporting document;
- submit the VAT registration application;
- upload the required electronic documents;
- wait for the approval notice;
- apply for the account number and password;
- comply with ongoing VAT obligations.
Foreign e-commerce operators should prepare a set of information regarding their company and business activities, such as:
- the company’s name,
- the name of the responsible person,
- the description of the business activity,
- the information regarding the tax agent,if one is appointed,
- the company’s registration documents issued in the country of origin.
When does VAT registration become mandatory in Taiwan?
The obligation to register for the Taiwan sales tax is required in the case of specific types of operations.
When referring to domestic companies, the registration is mandatory if they supply goods on the Taiwanese territory (this also includes the sale of real estate properties) or when they supply services on the local market. The importation of goods into Taiwan can also give rise to business tax obligations, depending on the nature of the transaction.
Foreign businesses should be analyzed separately from local companies. Special VAT registration rules apply to offshore electronic services business entities that have no fixed place of business in Taiwan and sell electronic services to individuals in Taiwan.
These businesses must register for VAT when their annual sales exceed NT$600,000. Depending on the case, the registration may be handled directly with the competent tax authority or through a tax-filing agent.
What accounting requirements apply after VAT registration in Taiwan?
Once the company is registered for VAT, it must comply with the accounting requirements available here. For example, a liable company has to file VAT refunds on a bi-monthly basis. It must also issue invoices to its clients in Taiwan following the national tax regulations.
For this purpose, an invoice should include the following elements:
- the company’s name and address,
- the company’s VAT number,
- the date at which the invoice was issued,
- the name and the address of the buyer,
- the buyer’s VAT number,
- the VAT that will be charged,
- the rate at which the Taiwan VAT is charged for the respective products or services,
- the currency in which the transaction is made and the total amount due.
The company can apply for a VAT number in Taiwan through the Ministry of Finance, by completing the Amendment of Registration Form and the Business Entry Registration.
The VAT registration in Taiwan is mandatory and the company has to pay VAT if the annual threshold of the company is above NTD 600,000.
Provided that the company does meet this requirement, it will pay the tax accordingly, but in the situation in which its yearly sales will drop under this value, the businesses registered with the Ministry of Finance will be deregistered from the system in a period of six months.
If the company in Taiwan is a VAT payer, it will be issued with a VAT number that has to be included in all its invoices. The standard VAT number in Taiwan is comprised of 8 digits.
Is there a VAT exemption in Taiwan?
Yes, companies in Taiwan can benefit from a VAT exemption in certain situations. However, it is important to distinguish between VAT-exempt transactions and transactions subject to a zero VAT rate.
Certain transactions are subject to a zero VAT rate, including:
- exported goods;
- services related to exports or services provided in Taiwan but used in a foreign country;
- goods sold to outbound or transit passengers by duty-free shops established under applicable law;
- international transportation, subject to certain conditions and reciprocity rules;
- vessels and aircraft used in international transportation and deep-sea fishing boats;
- goods and maintenance services used for vessels and aircraft involved in international transportation or deep-sea fishing.
Still, if the company carries multiple activities and some of them require the payment of the VAT, the company will still have to register and pay VAT.
An exemption from VAT registration and VAT payment is applicable for the following types of activities:
- specific medical services (not all are exempt),
- specific social welfare services,
- certain educational services,
- certain educational publications,
- the goods and services sold by students to the local consumer market,
- the water supplied for irrigation purposes.
For more information on other types of services and goods that can benefit from a full VAT exemption, you can address to our team of consultants in Taiwan company formation.
Can foreign businesses claim VAT refunds in Taiwan?
Businessmen who will set up a company in Taiwan in 2026 and who will become liable to the payment of the VAT must know that the applicable accounting law provides the right to obtain a VAT refund in specific situations.
As a general rule, the VAT refund procedure can be completed in a period of 2 months.
Please mind that in the case in which the business is closed down, the company can be entitled to VAT refunds, but in this case, the process can take much longer, as more complex procedures will have to be completed.
A foreign company may ask for a VAT refund in Taiwan only in limited situations, such as:
- participating in exhibitions;
- displaying or promoting its goods or services;
- carrying out business trips;
- attending staff training or manpower education activities;
- conducting market inspections or market research;
- purchasing business-related goods;
- holding or attending international conferences;
- attending business meetings or marketing seminars;
- carrying out other temporary business activities approved by the Ministry of Finance.
Are you interested in the procedure of VAT registration in Taiwan? Contact our team of specialists in company registration in Taiwan for more details!