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Foreign suppliers satisfying certain conditions have to apply for taxation registration

    The National Taxation Bureau of the Southern Area, Ministry of Finance indicated that in order to prompt  foreign suppliers selling cross-border electronic services to file an application for taxation registration and pay  business tax, and to hold the data and tax source of the sales of the electronic services sold to domestic individuals, the amended Value-Added and Non-Value-Added Business Tax Act was promulgated on Dec. 28, 2016 by The President and takes effect on May 1, 2017. Furthermore, under the consideration of the compliance cost to foreign suppliers and the equity of tax burden, foreign suppliers selling cross-border electronic services to domestic individuals are required to file an application for taxation registration when their annual sales amount exceeds NT$480,000.

The Bureau explained that the computation of the annual sales amount, which is accumulated by the amounts of sales to domestic individuals, is on the basis of the calender year. If the annual sales amount of this year or the previous year is over the threshold, the business entity has to apply for taxation registration by itself or appoint an individual residing within the territory of the R.O.C. or an enterprise, institution, group, or organization which has a fixed place of business within the territory of the R.O.C., as a tax-filing agent to handle these matters.

The Bureau further explained that for the convenience of foreign suppliers, the Ministry of Finance has established a simplified registration platform, which is scheduled to go on line on April 21, 2017. Foreign suppliers or agents may access and browse the platform in advance and may submit an application for taxation registration on line after May 1, 2017.
The Bureau reminds foreign suppliers that when the cumulative sales amounts of electronic services sold to  domestic individuals exceed the threshold, foreign suppliers shall follow the regulations to link to “VAT on cross-border electronic services” on our eTax Portal, Ministry of Finance (https://www.etax.nat.gov.tw)to register for taxation starting on May 1, 2017

2017-04-21 Ministry of Finance News

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