Regulations Governing the Levy of Business Tax on Cross-Border Electronic Services
Taiwan's Business Tax on Cross-Border Electronic Services (境外電商營業稅): Taxation Registration, Scope of Taxation, and Filing Rules (2026 Update)
A complete guide to business tax on cross-border electronic services (跨境電子勞務課稅), including the 2025 taxation registration threshold adjustment
Key takeaway: A Cross-Border Electronic Services Supplier (境外電商營業人) that sells electronic services (電子勞務) to domestic individuals (境內自然人) must complete taxation registration (稅籍登記) and file business tax at a 5% rate once its annual sales exceed NT$600,000 (raised from NT$480,000, effective April 7, 2025).
To govern the levy of business tax on foreign enterprises, institutions, groups, or organizations that have no fixed place of business within the territory of the Republic of China but sell electronic services to domestic individuals (referred to below as "Cross-Border Electronic Services Suppliers," 境外電商營業人), the Ministry of Finance has issued the "Regulations Governing the Levy of Business Tax on Cross-Border Electronic Services" (跨境電子勞務交易課徵營業稅規範) pursuant to the Value-Added and Non-Value-Added Business Tax Act (營業稅法, the "Business Tax Act") and related regulations. This article explains the scope of application, taxation registration, method of taxation, and filing and payment requirements in full.
What counts as an electronic service (電子勞務), and how is a "domestic individual" (境內自然人) defined?
Electronic services under these Regulations cover three categories:
| Type | Description |
|---|---|
| Download-and-store type | Services transmitted over the internet or by other electronic means for download and storage onto a computer or mobile device (such as a smartphone or tablet) |
| Online-use type | Services used over the internet or by other electronic means without needing to be downloaded or stored on any device, including online games, advertising, video streaming, audio broadcasting, digital content (such as movies, TV dramas, and music), and interactive communication services |
| Other type | Any other service provided via the internet or other electronic means, such as a service provided through a Cross-Border Electronic Services Supplier's online platform but used at a physical location |
Whether a buyer qualifies as a "domestic individual" is determined differently depending on whether the service has a physical place of use:
| Scenario | Determination criteria |
|---|---|
| No physical place of use | An individual domiciled or residing within the territory of the Republic of China; or the installation location of the device is within the territory; or the mobile phone number carries the country code 886; or the billing address, payment bank account, IP address, SIM card, or other transaction information indicates the buyer is a domestic individual |
| Has a physical place of use | Determined based on the location of real property (e.g., for lodging or repair services), the place where a transportation service is used, the place where a performance or exhibition activity is held, or otherwise whether the place of use of the service is within the territory of the Republic of China |
Taxation registration (稅籍登記) rules for Cross-Border Electronic Services Suppliers (2025 threshold update)
A Cross-Border Electronic Services Supplier whose annual sales of electronic services to domestic individuals exceed NT$600,000 must complete taxation registration, either on its own or through an appointed tax-filing agent, pursuant to Article 28-1 of the Business Tax Act and Chapter 3 of the Regulations Governing Taxation Registration. This threshold was raised from NT$480,000 to NT$600,000 effective April 7, 2025, and this article has been corrected to reflect the current rule.
Key taxation registration procedures are summarized below:
| Item | Requirement |
|---|---|
| Applying for registration | Apply online for taxation (establishment) registration at the Ministry of Finance's eTax Portal (www.etax.nat.gov.tw, Tax on Cross-Border Electronic Services area, Apply for Taxation Registration), and upload the electronic documents required under Article 14 of the Regulations Governing Taxation Registration |
| Obtaining a login account and password | After receiving approval notice from the competent tax collection authority, apply for a dedicated account and password at the eTax Portal using the business's uniform ID number, tax registration number, and registration number in its country of incorporation |
| Method of approval notice | The competent tax collection authority notifies applicants in writing; with the applicant's consent, notice may instead be given electronically and downloaded from the official document download area of the eTax Portal |
| Amendment registration | Any change to the appointed tax-filing agent, the agency period, or the scope of the agency must be reported for amendment registration within 15 days of the change |
| Suspension / resumption of business | Suspension of business must be reported to the eTax Portal in advance for recordation, and the same applies when resuming business |
| Cancellation of registration | Where any circumstance under Article 17 of the Regulations Governing Taxation Registration applies, cancellation of registration must be applied for within 15 days of the triggering event |
| Revocation of registration | If cancellation is not applied for within 6 months, and the entity still fails to act after notice from the competent tax collection authority, that authority may revoke the entity's taxation registration |
Scope of taxation (課徵範圍): who is liable for this business tax?
A Cross-Border Electronic Services Supplier that sells electronic services to domestic individuals through its own website or electronic system must file and pay business tax under Article 35 of the Business Tax Act on the full amount of consideration it collects.
In practice, transactions often involve multiple parties (a foreign supplier, an offshore platform, a domestic business entity, and a domestic individual buyer). Liability for reporting and paying tax on the full price generally follows whichever party actually collects payment and qualifies as the Cross-Border Electronic Services Supplier, summarized as follows:
| Transaction pattern | Party liable to file and pay business tax on the full price | Treatment of the other party's fee |
|---|---|---|
| Foreign supplier A collects payment directly (no physical place of use, or the place of use is domestic) | Foreign supplier A (if it qualifies as a Cross-Border Electronic Services Supplier and meets the registration threshold) | The service fee (commission) that offshore platform B charges A is outside the scope of Taiwan business tax |
| Offshore platform B collects payment on behalf of foreign supplier A (place of use is domestic, or there is no physical place of use) | Offshore platform B | The price A pays to B is outside the scope of Taiwan business tax |
| Domestic business entity 甲 collects payment directly (selling through offshore platform B) | Domestic business entity 甲 | The service fee platform B charges 甲 must be reported and paid by 甲 under Article 36, Paragraph 1 of the Business Tax Act |
| Offshore platform B collects payment on behalf of domestic business entity 甲 (place of use is domestic, or there is no physical place of use) | Offshore platform B | The price 甲 receives from B must also be reported and paid by 甲 under Article 35 of the Business Tax Act |
Regardless of the transaction pattern, if the service has a physical place of use and that place is outside the territory of the Republic of China, the transaction is outside the scope of Taiwan business tax.
Cross-border sales of electronic services to domestic individuals that do not fall into the patterns above remain subject to business tax under the Business Tax Act; where doubt arises, the competent tax collection authority will refer the matter to the Ministry of Finance for interpretation.
Filing and payment (申報繳納): tax rate, deadlines, and exchange rate conversion
| Item | Requirement |
|---|---|
| Filing method | A Cross-Border Electronic Services Supplier that has completed taxation registration must file and pay business tax at the eTax Portal (Tax on Cross-Border Electronic Services area, File and Pay Business Tax) within the deadline prescribed under Article 35 of the Business Tax Act |
| Merger, dissolution, etc. | Where a merger, transfer, dissolution, or cessation of business occurs, the current-period business tax must be filed and paid within 15 days of the event under Article 33 of the Enforcement Rules of the Business Tax Act |
| Crediting of input tax | Tax-bearing input documents obtained from a domestic business entity may be credited against output tax if not otherwise excluded from crediting, and provided the input is used exclusively for the sale of electronic services to domestic individuals and meets the requirements of Article 38, Paragraph 1 of the Enforcement Rules of the Business Tax Act |
| Foreign-currency conversion rate | Amounts denominated in foreign currency are converted to New Taiwan Dollars using the Bank of Taiwan's closing spot buying rate (or, if unavailable, the cash buying rate) quoted on the last day of the filing period (or the last day of the period preceding a merger or similar event); if the last day falls on a holiday, the rate for the next business day applies (postponed to the following Monday if it falls on a Saturday) |
| Checking published exchange rates | Available at the eTax Portal (Tax on Cross-Border Electronic Services area, File and Pay Business Tax, Exchange Rate Inquiry by Period) |
| Method of payment | Tax must be paid in New Taiwan Dollars; where payment is made by remittance, the entity bears its own remittance fees and related handling charges |
Investigation duties and penalties (違章處罰)
To verify taxation data, investigators designated by tax collection authorities or the Ministry of Finance's Taxation Administration may conduct investigations under Article 30 of the Tax Collection Act (稅捐稽徵法), and Cross-Border Electronic Services Suppliers are obligated to cooperate. A Cross-Border Electronic Services Supplier that fails to complete taxation registration or to file and pay business tax as required is subject to penalties under the Tax Collection Act, the Business Tax Act, and related regulations.
Frequently Asked Questions
At what annual sales level must a Cross-Border Electronic Services Supplier complete taxation registration?
A Cross-Border Electronic Services Supplier selling electronic services to domestic individuals must complete taxation registration once its annual sales exceed NT$600,000. This threshold was raised from NT$480,000 to NT$600,000 effective April 7, 2025; entities below the threshold are not yet required to register.
What is the business tax rate for Cross-Border Electronic Services Suppliers?
Cross-Border Electronic Services Suppliers are subject to a 5% business tax rate, filed and paid on the full amount of consideration collected under Article 35 of the Business Tax Act. Where the price is denominated in a foreign currency, it must be converted to New Taiwan Dollars using the Bank of Taiwan's published exchange rate for the relevant period before the tax amount is calculated.
Do Cross-Border Electronic Services Suppliers need to issue uniform invoices (統一發票)?
Cross-Border Electronic Services Suppliers are required under the Regulations Governing the Use of Uniform Invoices (統一發票使用辦法) to issue cloud invoices (雲端發票). Given their globalized operations and transaction patterns, the regulations specifically mandate cloud invoices rather than traditional paper uniform invoices.
Does a domestic business entity selling through an offshore platform also need to file tax?
It depends on who collects payment. If the domestic business entity collects payment directly from the buyer, it must file and pay business tax on the full price under Article 35 of the Business Tax Act. If the offshore platform collects payment on the entity's behalf, the amount the domestic entity receives from the platform must still be filed and paid under Article 35 of the Business Tax Act.
What happens if a Cross-Border Electronic Services Supplier fails to register or file as required?
A Cross-Border Electronic Services Supplier that fails to complete taxation registration or to file and pay business tax as required is subject to penalties under the Tax Collection Act, the Business Tax Act, and related regulations. Investigators designated by tax collection authorities or the Ministry of Finance's Taxation Administration may also conduct investigations under Article 30 of the Tax Collection Act, and the entity is obligated to cooperate.