Those who engage in online trading and the monthly average sales amount thereof exceeds the minimum taxable sales amount shall conduct taxation registration and pay business tax.
The National Taxation Bureau of Taipei, Ministry of Finance expressed that, due to the severe epidemic situation and convenience of online shopping, online trading had become more prevalent nowadays. The Bureau would like to remind traders who often sell products or services online to conduct taxation registration and pay business tax as they are business entities regulated under the Value-added and Non-value-added Business Tax Act (hereinafter referred to as Business Tax Act).
The Bureau explained that individuals who sell products or services through the internet for profit might be exempted from applying for taxation registration to the National Taxation Bureau if the monthly average sales amount thereof does not exceed the minimum taxable sales amount (which is NTD80,000 for the sale of products and NTD40,000 for the sale of services). Those whose monthly average sales amount exceeds the minimum taxable sales amount, on the other hand, must apply for taxation registration to the National Taxation Bureau. For business entities who already conducted taxation registration and whose monthly average sales amount is less than NTD200,000, the National Taxation Bureau will determine the amount of business tax, which is 1% of the monthly sales amount, each month and issue a payment notice thereto on a quarterly basis. As for business entities whose monthly average sales amount exceeds NTD200,000, they must issue uniform invoices as prescribed by law, and file a bimonthly tax (two months as one period) return within fifteen days of the following period.
The Bureau made an example: Party A sold various daily necessities and food through the internet platform and, according to the Bureau’s investigation, the monthly sales amount thereof was over NTD1,000,000 starting from February 2020. Although the said amount already reached the threshold of issuing uniform invoices, Party A had never applied for taxation registration. The Bureau, therefore, based on the investigation, determined that Party A failed to issue uniform invoices and file tax return for over NTD15,000,000, requested Party A to pay the business tax of over NTD750,000, and imposed a penalty thereon according to relevant regulations. Afterwards, Party A not only applied for taxation registration, but also applied for the use of eCloud invoices.
The Bureau appeals to all citizens who frequently sell products or services through the internet platform to check their own conditions; and, in cases of reaching the threshold of conducting taxation registration, immediately apply for taxation registration at a taxation agency nearby the place of business and pay business tax as prescribed by law. If there are any questions, citizens and business entities can contact any branch or office of National Taxation Bureau, or dial the free hotline of National Taxation Bureau (0800-000-321) and dedicated personnel will be happy to provide related services.
(Contact Person: Examiner Hung of Third Examination Division; Tel: 2311-3711 Ext. 1740)
Reference URL：https://www.mof.gov.tw/Eng/singlehtml/f48d641f159a4866b1d31c0916fbcc71?cntId=d94fd64505bf4fedbe0e4fe591fd899d