Offshore e-commerce suppliers that sell cross-border electronic services to individuals in the Republic of China (Taiwan) and have annual sales of more than NT $480,000 (US $17,224) must apply for tax registration in the R.O.C., according to a new announcement.
They must register through the Ministry of Finance’s online tax portal, issue cloud invoices, file tax returns, and pay business taxes based on total revenue, according to the R.O.C.’s National Taxation Bureau of Taipei.
The tax bureau, an arm of the Ministry of Finance, explained that in the post-pandemic era, the demand for electronic services has been growing quickly. It listed the sharp rise in activities such as remote working, virtual learning, online social networking and ordering/delivering platforms.
The measure refers to services used to download via the Internet or other electronic tools and saved to computers, smart phones, tablets, portable devices, mobile devices, etc.
The new rule also applies to services used online without being saved to devices. Examples include online games, advertisements, audio-visual browsing, voice frequency broadcasting, social networking websites, movies, music, lessons, survey development cloud-based software and interactive communications.
It applies to services that are supplied through the Internet or other electronic tools while taking place at a physical location, as well.
Those who sell electronic services to domestic individuals with annual sales amounts over NT$480,000 (US $17,224) but fail to apply for tax registration may face penalties with an administrative fine of NT $3,000 to NT $30,000 (US $108 – US $1,077), the tax bureau said.
Penalties might be waived for cross-border e-commerce suppliers who review their possible deficiencies and take “appropriate remedial actions,” it said.
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