“VAT on cross-border electronic services” The amendment to the VAT Act was promulgated by the President on December 28, 2016
In order to respond to the international trend and in order for the government to control tax sources, the amendment to the Value-Added and Non-Value-Added Business Tax (hereinafter referred to as VAT) Act was promulgated by the President on December 28, 2016. The implementation date of the amendment has yet to be prescribed by the Executive Yuan. The Act stipulates that foreign suppliers selling cross-border electronic services to domestic individual purchasers shall register for business and pay VAT.
The related contents of the amendment are as follow:
1.To add the definitions of taxpayer and business entity selling cross-border electronic services.
2.To add the requirement for a business entity selling cross-border electronic services to apply for taxation registration with the competent tax authority and file a bimonthly VAT return or appoint a tax-filing agent to handle it.
3.To impose a penalty on any tax-filing agent failing to file a VAT return and pay VAT on behalf of the taxpayer.
The Ministry of Finance (MOF) will plan for subsequent enactment or amendment of related regulations and for the establishment of a website for simplified business registration and VAT filing.