According to the National Taxation Bureau of Kaohsiung, Ministry of Finance, the sales  referred to in Paragraph 1, Article 16 of the Value-added and Non-value-added Business Tax Act is the total consideration received from the sale of goods or services, including charges collected by the business entity other than the sales amount of the goods or services sold.  Therefore, if a customer's purchase does not reach the free shipping threshold, the additional shipping fee charged shall fall within the scope of the sales according to the aforementioned regulations, the business entity selling goods shall issue a uniform invoice to pay business tax.  

Taxation Bureau takes a case for example, company A selling goods on an online shopping platform indicates a shipping fee of NT$75 would be charged if the purchase on the platform is less than NTS499. Now, consumer B buys goods on the platform for only NT$450, and an additional shipping fee of NT$75 is charged as the purchase is below the free shipping threshold. Since the total sales amount of the order is NT$525, company A should issue a uniform invoice for NT$525.

In particular, the Taxation Bureau reminds that the business entities engaged in online sales are advised to examine whether they have not issued uniform invoices for the shipping fees charged and, before any accusation received or investigation made by the taxing authority, to self-file and pay the evaded tax to the jurisdictional taxing authority as soon as possible to protect their own rights.

Contact: Mrs. Lee, Revenue Assessor of the First Legal Affair Division
TEL: 07-7256600 ext. 7509