“VAT on cross-border electronic services” The draft amendment to VAT Act was passed by the Finance Committee of the Legislative Yuan on November 30, 2016
In order to respond to international trend and for the government to control tax sources, the draft amendment to Value-Added and Non-Value-Added Business Tax (hereinafter referred to as VAT) Act is passed by the Finance Committee of the Legislative Yuan on November 30, 2016 and delivered to the Legislative Yuan for second and third readings. 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 draft amendment are as follows：
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 add the penalty on the tax-filing agent for failing to file a VAT return and pay VAT on behalf of the taxpayer.
The Ministry of Finance (MOF) will assert every effort to communicate with various parties in the Legislative Yuan to complete the amended procedure and plan for subsequent enactment or amendment of related regulations.
Contact：Section Chief Ms. Yeh