# Taiwan VAT Guide for 2026: Business Tax Rates, Registration & Compliance

Canonical: https://trykintsugi.com/sales-tax-guides/apac/taiwan
Published: July 15, 2026

Taiwan levies a 5% business tax (VAT) on most transactions. This guide covers registration for foreign e-service suppliers, invoicing via the GUI system, and filing schedules.

- **SaaS:** Taxable (5%)
- **Digital Goods:** Taxable

## Key Takeaways

Taiwan's business tax on most transactions is a VAT of 5% — one of the lowest standard rates in Asia — with exports zero-rated. Domestic businesses register when they begin taxable activity, and offshore electronic-services suppliers must register once annual B2C sales to Taiwan individuals exceed NT$600,000 (raised from NT$480,000 in April 2025). Land, financial, medical, and education supplies are exempt; SaaS and cross-border electronic services are taxable at 5% and require cloud (e-uniform) invoices.

## Taxability Snapshot

## Sales Tax Rates

Taiwan's business tax on most transactions is a value-added tax (VAT) of 5%, one of the lowest standard rates in Asia. Exports and export-related services are zero-rated, and land, financial, medical, and education supplies are exempt. The Ministry of Finance (MOF) administers it; banks, insurers, and certain special businesses instead pay a gross business receipts tax [1].

| Rate | Applies to |
| --- | --- |
| Standard 5% | Most goods and services, including cross-border e-services |
| Zero 0% | Exports and export-related services |
| Exempt | Land transactions, financial, medical, education |

For more detail, see our [APAC VAT guides](/sales-tax-guides/apac).

#### Registration & nexus threshold

Taiwan uses business-tax registration rules, not US-style economic nexus. Domestic businesses register when they begin taxable activity. Offshore electronic-services suppliers selling to Taiwan individuals must register for business tax once annual B2C sales exceed NT$600,000 (raised from NT$480,000 in April 2025), either directly on the Ministry of Finance eTax portal or through an appointed local tax-filing agent, and charge 5% business tax [1][3][4]. Sales to Taiwan business buyers are accounted for by the buyer, so the offshore supplier's registration duty is driven by B2C sales. Registration steps are in the How to Register section.

#### Filing frequency & deadlines

Offshore e-service suppliers file bimonthly. Each two-month period's return and payment are due by the 15th of the following month — for example, the January–February period is due 1–15 March. A return is required even when there were no sales [1][2].

#### Exemptions

Land transactions, financial services, medical care, and education are exempt, and exports are zero-rated. SaaS and other cross-border electronic services supplied to Taiwan consumers are taxable at 5% and require cloud (e-uniform) invoices [1][2].

#### Penalties

Operating without registration draws a fine of NT$3,000 to NT$30,000, with consecutive fines for continued non-compliance. Late payment adds a 1% surcharge for every three days overdue, and evaded tax can be fined up to five times the amount [1].

#### Sources

- [1] [eTax Portal, Ministry of Finance — Introduction to Business Tax on Cross-Border Electronic Services (5%)](https://www.etax.nat.gov.tw/etwmain/en/cbec-tax-area/business-tax/taxation-system-intro)

- [2] [eTax Portal, Ministry of Finance — Filing of VAT returns and payment of tax](https://www.etax.nat.gov.tw/etwmain/en/cbec-tax-area/business-tax/taxation-system-intro/q-and-a/Gz6MjlP)

- [3] [Taxation Administration, Ministry of Finance — VAT system for foreign suppliers of cross-border electronic services](https://www.dot.gov.tw/Eng/singlehtml/en_187?cntId=dot_201909050001_187)

- [4] [eTax Portal, Ministry of Finance — Apply for taxation registration](https://www.etax.nat.gov.tw/etwmain/en/cbec-tax-area/business-tax/file-taxation-registration)

Verified July 2026 against Ministry of Finance (Taiwan) guidance.

#### Frequently asked questions

### What is the Taiwan VAT rate in 2026?

The standard business tax (VAT) rate is 5%, including on cross-border electronic services sold to Taiwan consumers.

### What is the registration threshold for foreign digital sellers?

NT$600,000 in annual B2C e-service sales to Taiwan individuals, raised from NT$480,000 on 7 April 2025.

### Is SaaS taxable in Taiwan?

Yes. Offshore SaaS and electronic services sold to Taiwan individuals are subject to 5% VAT under the cross-border e-services regime.

### What must a non-resident digital seller do?

Register on the MOF eTax platform once over NT$600,000, then file and pay 5% VAT bimonthly; B2B sales are reverse-charged by the buyer.

### When are Taiwan VAT returns due?

Every two months, filed and paid by the 15th of the following month (e.g. the Jan–Feb period is due 1–15 March).

### What is the penalty for late Taiwan VAT?

Not registering draws a NT$3,000–30,000 fine; late payment adds a 1% surcharge for every three days late, and evaded tax up to five times the amount.