Taiwan proposes VAT on foreign e-services

27 July 2016

The Taiwanese government is planning to make it mandatory for non-resident providers of digital services to VAT register and start charging VAT at 5% on their supplies.

Currently non-resident businesses providing digital services do not have to charge VAT on their sales to consumers, instead the consumer purchasing the e-service self-declares and pays any VAT due to the Taiwanese tax authorities.

This new tax will be applied to a range of electronic services including streaming games, music, apps, films, e-books, e-journals and internet services.