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29 January 2019 Taiwan’s uniform invoice regulations require action by foreign e-commerce operators Following the enactment of Taiwan’s Tax Ruling No. 106005495201 requiring the Value Added Tax (VAT) registration and VAT filing obligations for foreign enterprises, institutions, groups or organizations without a fixed place of business in Taiwan (referred to as foreign e-commerce operators, FECOs) when providing e-commerce services to domestic individuals,2 Taiwan’s Ministry of Finance (the MOF) issued two additional tax rulings3 announcing the relevant government uniform invoice (GUI) regulations. FECOs that sell e-commerce services to domestic individuals (domestic purchasers) are subject to GUI regulations beginning in 2019. FECOs should issue cloud GUIs to domestic purchasers. The cloud GUIs are defined as electronic GUIs and issued by business entities to domestic purchasers through means, such as email and phone that are approved by the MOF. Issuance of cloud GUIs
Failure to issue cloud GUIs penaltiesUnder the VAT Act and Tax Collection Act in Taiwan, FECOs that fail to issue cloud GUIs would be subject to a penalty of up to five times of the tax that should have been collected through the issuance of the cloud GUI. In addition, failure by FECOs to issue cloud GUIs more than three times in a 12-month period, beginning with the first failure, may result in closures of the FECOs’ businesses. FECOs should choose one of the two manners to upload the cloud GUI data to the MOF’s platform – directly by FECOs or appointing Value-Added Centers.
2. See EY Global Tax Alert, Taiwan issues ruling on new tax guidelines on cross-border e-commerce transaction, dated 4 May 2017. Ernst & Young (Taiwan), Taipei
Ernst & Young LLP, Asia Pacific Business Group, New York
Document ID: 2019-5135 |