Taiwan's Parliament Approves VAT On Online Retailers,
by Mary Swire, Tax-News.com, Hong Kong
Tuesday, December 13, 2016
Taiwan's Legislative Yuan has approved the Finance Ministry proposal to impose
value-added tax (VAT) on foreign online sellers' supplies to Taiwanese consumers.
The proposal is intended to modernize Taiwan's VAT and non-VAT business turnover
tax rules, raise additional revenues, and level the playing field for bricks
and mortar retail and service businesses.
Foreign online suppliers selling cross-border goods and electronic services
to end consumers will have to register for tax in Taiwan through a permanent
establishment, or appoint a VAT or turnover tax representative. The permanent
establishment or agent will be required to file the necessary tax returns. Significant
penalties are to be imposed for non-compliance.
The Finance Ministry is now to draw up the required registration and tax payment
procedures. It is expected that the measure will be implemented early in 2017.