Article 1 of the Value Added and Non-Value Added Business Tax Act states “business tax, in the form of valueadded or non-value-added tax, shall be levied upon the sale of goods and services within the territory of the R.O.C. as well as upon imported goods.” Based on the above, value added tax (VAT) is charged on taxable transactions that take place in Republic of China (Taiwan). The fact that one party to the transaction may not be located in Taiwan is irrelevant for VAT purposes.
Corporations resident in Taiwan are subject to income tax on their worldwide income. A company is normally considered a resident of the place where its head office is located.
Taiwan has undergone rapid development in the ecommerce market over recent years, and foreign ecommerce operators constantly knock on Taiwan’s door wanting to trade with Taiwanese residents via the internet. Most of these e-commerce operators have no permanent establishment in Taiwan.