Sales of diplomatic institutions in Taiwan and their personnel are subject to zero-tax-rate, and the amount received should be deducted from business tax
The National Taxation Bureau of the Northern Area (NTBNA), Ministry of Finance stated that, for business entities whose business tax liability fall under Section 1 of Chapter 4 of the Value-Added and Non-Value-Added Business Tax Act, the sales of goods or services of diplomatic institutions in Taiwan and their personnel holding a "Business Tax Exemption Certificate" issued by the Ministry of Foreign Affairs are subject to zero-tax-rate.
The NTBNA further indicates that when a business entity sells goods or services to an agency and its personnel, they should check the "Business Tax Exemption Certificate" issued by the Ministry of Foreign Affairs, and the "Diplomatic Official Card," "International Organization Official Card," or "Foreign Agency Official Card". The business entity should collect payment according to selling price after deducting business tax, and issue a zero-tax-rated uniform invoice. In addition, the "tax exemption certificate number" should be stated on the issued uniform invoice which shall be signed by the buyer who is responsible for purchasing business or enjoys tax-exemption treatment.
In an example provided by the NTBNA, in which Company A sells electronic products priced at NT$2,100 by Consulate B, Company A should charge NT$2,000 (deducting business tax of NT$100) and issue a zero-tax-rated uniform invoice for sales of NT$2,000. The buyer should indicate the name of the Consulate B and the tax exemption certificate number in the remarks column. Company A shall fill out the List of Sales for Goods and Services Sold by a Business Entity at Zero-tax-rate and submit the photocopy of the invoice to apply for the zero-tax-rate.
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Reference URL：https://www.mof.gov.tw/Eng/singlehtml/f48d641f159a4866b1d31c0916fbcc71?cntId=c61f6613b76943dda1a7fc4fbc248457