Taiwan VAT Registrations Explained

Updated 2 months ago

Which VAT Registration Scheme Applies to Your Business?

There are two VAT registration schemes in Taiwan. The scheme that applies to you depends on whether your business has a physical presence in Taiwan.

Scheme 1: Standard VAT Registration

This scheme is for businesses with a physical presence (permanent establishment) in Taiwan.

Covers all taxable supplies: B2B and B2C, goods and services
Allows full input VAT recovery
No revenue threshold — registration is required from the first taxable supply
Filing currency: TWD (New Taiwan Dollar)
Filing frequency: Bi-monthly (default); monthly filing is available only for exporters with zero-rated sales

Scheme 2: Simplified Registration for Cross-Border Electronic Services (FECO Scheme)

This scheme is for Foreign E-commerce Operators (FECOs) — non-resident businesses selling digital or electronic services to individual consumers (B2C) in Taiwan without a physical presence in the country.

Covers B2C electronic and digital services only
Input VAT recovery is not allowed under this scheme
Revenue threshold: TWD 600,000 in annual B2C sales to Taiwan individuals
Filing currency: TWD (foreign currency amounts are converted using the Bank of Taiwan spot buying rate on the last day of the taxable period)
Filing frequency: Bi-monthly (no monthly option for non-residents)

Which scheme applies to Kintsugi customers?

For non-resident SaaS providers with no physical presence in Taiwan, Scheme 2 (Simplified / FECO) is the correct scheme. B2B sales are handled via reverse charge and do not require registration.

Migration between schemes:

If a business registered under the Simplified scheme establishes a physical presence or permanent establishment in Taiwan, it must migrate to the Standard scheme.

Filing frequency and deadlines:

Business type	Frequency	Deadline
Resident (Standard)	Bi-monthly (default)	15th of the month following each two-month period
Non-resident (Simplified / FECO)	Bi-monthly	15th of the month following each two-month period
Resident exporter	Monthly (optional)	15th of the month following each month

Bi-monthly tax periods:

Period	Deadline
January – February	March 15
March – April	May 15
May – June	July 15
July – August	September 15
September – October	November 15
November – December	January 15 (following year)

First filing period:

For resident businesses: The first filing period begins from the date of first taxable sale and runs through the end of that bi-monthly period.
For non-resident (FECO) businesses: The first filing period begins from the date the threshold is crossed and runs through the end of that bi-monthly period.

Payment:

Resident businesses: Payment must be made to a local bank account in Taiwan.
Non-resident (FECO) businesses: No local bank account is required. International bank transfers are accepted.

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