Taiwan's VAT On Online Retailers Becomes Law,
by Mary Swire, Tax-News.com, Hong Kong
Monday, January 2, 2017
On December 28, Taiwan's President Tsai Ing-wen signed into law the amendment
to the Value-Added and Non-Value-Added Business Tax Act to impose tax on foreign online sellers' supplies to Taiwanese consumers.
The amendment is intended to raise additional
revenues and level the playing field for Taiwanese bricks-and-mortar retail
and service businesses.
The Ministry of Finance is to draw up the required tax regulations
and procedures. In addition, it is to establish a website for simplified business registration and for filing VAT returns and paying VAT.
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 non-VAT tax representative. The permanent
establishment or agent will be required to file the necessary bimonthly tax
returns. Significant penalties will be imposed for non-compliance.