Taiwan introduced Business Tax in 1931. This includes a Value Added Tax (VAT) and Gross Business Receipts Tax (GBRT)

It is operated by the Taiwan Ministry of Finance.

Resident companies providing the following taxable goods or services may have to apply for a VAT registration number:

• Domestic supplies of goods, including assets and real estate, within Taiwan
• Domestic sale of services or intangibles within the country
• Importing goods into Taiwan

B2B services provided to Taiwanese businesses do not require the foreign provider to register – the reverse charge should be applied instead.

Foreign companies cannot apply for a Taiwanese VAT number. Instead they must form a local entity, or use an agent, to provide a domestic taxable supply of goods or services. The exception is B2C digital services. The VAT registration threshold for this is TWD 480,000 per annum.

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