The 2012 worldwide VAT, GST and sales tax guide

T AIWAN 635
Indirect tax contacts
Milly Liu +886 (2) 2720-4000, Ext. 2704
Email: milly.liu@tw.ey.com
Michael Lin +886 (2) 2720-4000, Ext. 1608
Email: michael.lin@tw.ey.com
Sophie Chou +886 (2) 2720-4000, Ext. 1610
Email: sophie.chou@tw.ey.com
ChienHua Yang +886 (2) 2720-4000, Ext. 1616
Email: chienhua.yang@tw.ey.com
A. At a glance
Name of the tax
Business tax (including valueadded
tax [VAT] and Gross
Business Receipt Tax [GBRT])
Introduced 13 June 1931
(revised October 2011)
European Union (EU)
member state
No
Administered by
Ministry of Finance (MOF)
Rates
VAT
0%/5% and exempt
GBRT 0.1% to 25%
Return periods
Bimonthly
Thresholds
Registration
Recovery of VAT by
nonestablished businesses
B. Scope of the tax
None (a business entity that
conducts business activities in
Taiwan must register)
No (certain exceptions exist)
Taiwan imposes business tax, which consists of VAT and GBRT.
Business tax applies to the following:
• Sales of goods in Taiwan. A transaction involving goods is a
transfer of ownership of goods to others for consideration. This
is not limited to goods exchanged for money. The exchange of
goods for other goods is also included.
• Sales of services in Taiwan. A transaction involving services is
the rendering of services to others or supplying goods for the
use of others for consideration.
• Import of goods into Taiwan by individuals or companies.
Taxable persons may be subject to both VAT and GBRT. For
example, a bank may be subject to VAT on its rental sales and
GBRT on its interest income.
Input tax is deductible only with respect to VAT.
Exempt supplies apply to both VAT and GBRT. Zero-rated supplies
apply only to VAT.
In general, both VAT and GBRT liability are based on the sales
amount, which includes all of the consideration received from
sales of goods and services, and expense reimbursements.