Taiwan Raises VAT Registration Threshold for Foreign E-Commerce Operators
Taiwan continues to refine its digital tax framework in response to the evolving global e-commerce landscape. The Taiwanese Ministry of Finance has raised the VAT registration threshold for overseas e-commerce businesses selling digital services to local consumers.
Effective Date and Official Announcement
The updated threshold was announced on April 7, 2025, in a publication by the Taiwanese Ministry of Finance and came into effect immediately.
Key Changes to the VAT Threshold
- Previous threshold: NT$480,000 annual revenue
- New threshold: NT$600,000 annual revenue
The Ministry of Finance has amended its rules under the Value-Added and Non-Value-Added Business Tax Act. The threshold for tax registration for foreign digital service providers has been raised from NT$480,000 to NT$600,000 per year.
Implications for Foreign E-Commerce Providers
Previously, the threshold mirrored the NT$40,000 monthly sales benchmark for domestic online sellers. In light of a previous amendment that raised the domestic small-scale operator benchmark to NT$50,000 per month, the Ministry has updated the foreign threshold accordingly.
Foreign e-commerce operators must apply for tax registration if their sales exceed NT$600,000 annually, issue cloud invoices, and comply with Taiwan's tax requirements through the Overseas E-commerce Taxation Zone.
Why This Matters
This change reduces administrative burdens for smaller overseas sellers and reflects a balanced approach to taxing domestic and international digital service providers. Companies near the new threshold should assess their compliance needs immediately to avoid penalties.
For a deeper look into how Taiwan taxes digital services, visit our Taiwan Digital Services Tax Guide.
Next Steps for Your Business
If you’re a foreign e-commerce provider or digital service platform selling to Taiwan-based consumers, now is the time to:
- Review your annual sales data for Taiwan
- Check your invoicing and reporting systems
- Consult with a tax compliance advisor
Need help determining whether you meet Taiwan’s updated threshold?
Contact us for a personalized compliance assessment.
