VAT number in Taiwan contains 8 digits (e.g., 01234567).
The standard VAT rate applicable to almost all goods and services in Taiwan is 5%.
Besides the standard VAT rate, Taiwan also has a special VAT, called GBRT for various services:
All businesses with Taiwanese VAT number must submit periodic VAT reports and payments.
Taiwan requires a bi-monthly tax return on a prescribed form for its sales amount and tax payable or overpaid of the preceding two months together with a tax deduction and other appropriate documents with the competent tax authority before the fifteenth day of the following period.
In the case of the late filing of VAT returns and payments, the Taiwanese government prescribed the penalties as follows:
According to Regulations Governing the Use of Uniform Invoices, article 9, business entities shall provide:
Non-compliance with invoicing regulations will trigger a fine between NT$3,000 (EUR 90) and NT$30,000 (EUR 900), and 1% of the sales amount on the uniform invoice.
Taiwanese government introduced mandatory electronic invoicing for all B2G transactions. Electronic invoicing in B2B and B2C is not compulsory at this moment.
What is Taiwan’s eGUI system?
eGUI system is a special system developed by the Taiwan government. The main purpose of this system is to eliminate the grey economy and establish a transparent environment for both sellers and customers. In the middle of the 20th century, the Taiwanese government introduced an invoice lottery system to encourage customers to request an invoice in order to increase compliance with its tax regulations. That lottery system is actual today as well, and millions of Taiwanese customers are part of it.
The uses of uniform invoices are as follows:
When purchasing uniform invoices for the first time, business entities shall apply with the competent tax authority to obtain a uniform invoice purchase certificate. The purchase certificates are required to be stamped with the unique uniform invoice seal of the entity.
The unique uniform invoice seal shall contain the name, the uniform serial number, and the address of the business entity, as well as the words “Uniform Invoice Seal.” The consistent serial number thereon shall be engraved in Arabic numerals using standard No. 5 font size in boldface.
Electronic invoices must be logged with the MoF Platform with the appropriate eGUI number no later than 48 hours after the transaction.
When Business entities sell goods or services and issues and transmit electronic uniform invoices, they have to upload the information of uniform invoices to the E-Invoice Platform of the Ministry of Finance.
eGUI numbers must be requested for every bi-monthly reporting period(bi-monthly tax report must match e-invoices sent via Platform).
There are two ways of invoices reporting:
A foreign enterprise, institution, group, or organization having no fixed place of business within the territory of the R.O.C. selling electronic services to domestic individuals shall be the taxpayer of the business tax(VAT).
Non-resident providers must register with the tax authorities directly or via a local tax agent.
A standard tax rate of 5% is applied.