Taiwan VAT on B2C e-services
Taiwan’s parliament (Yuan) has passed a law levying VAT on electronic services sold to consumers by non-resident providers. There is limited clarity of the range of service subject to VAT, but it will include downloads, Apps, ebooks and online car-sharing services etc.
Providers will have to form a permanent establish in Taiwan to pay any collected tax, or appoint a resident tax agent. Details of filing arrangements will be provided in early 2017. Generally, VAT filings are bi-monthly in Taiwan, and there is no VAT registration threshold. The current VAT rate in Taiwan is 5%.
The change brings the country into line with similar VAT charges in the EU, Japan, India, South Korea, South Africa and New Zealand. Russia it to impose VAT on foreign providers from 1 January 2017. Australia will introduce a similar regime later in 2017.
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