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. In the past, foreign companies having no permanent establishment in Taiwan did not need to register for Taiwan VAT. In order to close this loop hole on e-commerce tax collection, the Taiwanese Ministry of Finance has revised VAT regulations. Effective from 1 May 2017, international e-commerce operators that meet certain criteria will be forced to complete Taiwan VAT registration.

Jay Lo,Tax Partner , +886 (0)2 2789 0887 Ext. 314