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.