Taiwanese VAT rates and compliance

Taiwanese VAT and GBRT rates

There are a range of VAT and Gross Business Receipts Tax (GBRT):

Rate	Type	Which goods or services
5%	Standard	All other taxable goods and services
0%	Zero	Exports and related services; some goods and services associated with international transportation
0%	Exempt	Basic foodstuffs; sale of land; and a range of financial instruments
0.1%	GBRT	Agriculture
1%	GBRT	Small enterprises; reinsurance premiums
5%	GBRT	Financial services
15%	GBRT	Entertainment services at restaurants or nightclubs

VAT compliance

As a tax payer, VAT registered business must comply with the rules and record keeping requirements of the VAT Act. This includes invoice format and records. VAT invoices and records must be stored for at least seven years. Records may be stored electronically.

Time of supply

The period the VAT is due – time of supply or tax point – is generally at the time of delivery or cash payment of the goods. For services, it is the time of cash settlement. For installment payments, the VAT is due at the corresponding time of each payment. VAT on advance payments are only liable when the delivery is performed.

Import VAT is due at the time of clearing the goods into Taiwan through customs.

Get help solving your VAT challenges