VAT Guide for Businesses with Customers in Taiwan

This is a guide for businesses with customers in Taiwan regarding Value Added Tax (VAT).
Taiwan has two types of business tax: VAT and Gross Business Receipts Tax (GBRT).
The standard VAT rate is 5%, with some exemptions.
GBRT applies to specific industries and the rate depends on the entity type and type of supply. There is no registration threshold for domestic or non-established sellers, but non-resident suppliers of Digital Services must register if their annual turnover exceeds TWD 480,000.
The format of the Tax ID Number (TIN) varies for individuals based on their nationality and registration status.
Taiwan has implemented a VAT obligation for cross-border sales of business-to-consumer electronic services, with a 5% VAT rate.
Foreign sellers must register for VAT purposes, file VAT returns, and pay VAT if their annual sales exceed TWD 480,000.
Digital services that fall within this obligation include downloadable services, online services, and services ordered online but delivered in a physical location in Taiwan.

Source Fonoa