Taiwan Value Added Tax (VAT)

From 1 September 2017, the Taiwanese government has implemented legislation requiring non-residents who are providing "remote services" to begin collecting Taiwanese VAT on these services when they are provided to Taiwanese residents or persons who are not registered for VAT. In this context, remote services provided by Amazon are the Selling on Amazon fees. Unless a seller has provided Amazon with its Taiwanese Unified Business Number (UBN) as evidence that it is VAT-registered in Taiwan, the rule requires Amazon to collect and remit Taiwanese VAT at a standard rate of 5% on Selling on Amazon fees paid by sellers who are residents of Taiwan. Taiwanese sellers who provide Amazon with their UBN will not have a VAT of 5% applied to their Selling on Amazon fees.

To provide Amazon with your Taiwanese UBN:

1. Log in to Seller Central.
2. Under Settings, choose Account Info.
3. In the section Tax Information, click on VAT information.
4. Click on Add New VAT/GST Registration Number.
5. Select Taiwan from the list of countries.
6. Add your 8-digit Taiwanese UBN.
7. Choose or add a business address.
8. Click I accept and acknowledge all conditions set out in the Tax registration agreement.
9. Click Save.

To learn more about how this regulation impacts your Selling on Amazon account, visit the Taiwanese Taxation Administration, Ministry of Finance website.

How does this apply to my selling account?

If you are a resident of Taiwan, Selling on Amazon fees charged to your selling account are subject to Taiwanese VAT unless you are VAT-registered and have provided Amazon with a Taiwanese Unified Business Number (UBN) as evidence that you are VAT-registered in Taiwan.

How do I obtain a Taiwanese Unified Business Number?

You can register for a Taiwanese Unified Business Number online or consult your tax and legal adviser. Please note that we will charge you VAT unless you are registered for VAT in Taiwan and have provided your UBN to us.

I am not a Taiwanese resident. Will Amazon charge my account with Taiwanese VAT fees?

If you are not a resident of Taiwan, Selling on Amazon fees through your selling account will not be subject to Taiwanese VAT collection. Consult your tax adviser to help you understand if you have any Taiwanese VAT obligations in Taiwan.

How is Taiwanese VAT charged?

Amazon will charge Taiwanese sellers a standard rate of 5% VAT on their Selling on Amazon fees if the seller does not have a valid Taiwanese UBN on file as evidence that it is VAT-registered. Amazon began calculating and collecting Taiwanese VAT on fees effective 1 September 2017.

Why is Amazon continuing to collect Taiwanese VAT after I provided a valid Taiwanese UBN?

Amazon will not calculate and collect Taiwanese VAT if you provided a valid Taiwanese UBN as evidence that you are VAT-registered in Taiwan.

However, there may have been VAT collected on certain orders due to timing. Amazon calculates Taiwanese VAT when an order is placed and charges it to your account when the order is shipped. Therefore, Taiwanese VAT may have been collected on orders placed prior to the time you provided your Taiwanese UBN.

I updated my information to reflect my current address, which is outside Taiwan. Why is Amazon continuing to collect Taiwanese VAT?

Amazon calculates Taiwanese VAT on fees when an order is placed, and collects it when an order is shipped. If the information you provided at the time of shipment indicated you were a resident of Taiwan, then Taiwanese VAT will have been collected. This might have occurred if there were pending orders before you updated your current address and payment information.

Go to Seller Account Information, and review each section to ensure that all of your information is complete and accurate.

I am no longer a resident of Taiwan, and I updated all my information to reflect my current address. Can Amazon refund previously charged Taiwanese VAT to my seller account?

Amazon is required to charge and remit Taiwanese VAT based on the information in your seller account. At the time the VAT was calculated and collected, Amazon had enough information to associate your account with Taiwan. Amazon cannot refund Taiwanese VAT without a valid Taiwanese UBN on file.

How do I receive a refund for previously charged Taiwanese VAT on my seller account?

You may request a refund for previously charged Taiwanese VAT once you have provided Amazon with a valid Taiwanese UBN as evidence that you are VAT-registered in Taiwan.

To request a refund:

1. Submit your Taiwanese UBN to Amazon by following the process listed above.
2. Contact Amazon Seller Support.
   
   1. Choose Selling on Amazon.
   2. Click Other issues and then Tax Questions.
   3. Under What are your tax questions, request a refund of the Taiwanese VAT charged to your seller account.
      Note: Taiwanese VAT refund requests can take up to 90 days to process.

You will receive an update for your case when your request has been processed. The update will provide the estimated date when you can expect to receive a refund in your seller account if your request was approved.

Will Amazon provide me with an invoice for any Taiwanese VAT collected on Selling on Amazon fees?

Amazon is not required to issue tax invoices under the Taiwanese legislation. All monthly activity can be found in date range reports. You can view these reports by going to Seller Central > Reports > Payments > Date Range Reports > and selecting a transactional report for a particular time frame.

Can Amazon help me with my tax return?

While we are committed to helping sellers, we do not provide tax advisory or compliance services. Please contact a tax adviser.