Overview

Amazon sellers based in Taiwan who operate as non-business (individual) customers are subject to a 5% Value Added Tax (VAT) on certain Amazon fees. As part of Taiwan's tax regulations, Amazon issues monthly cloud Government Uniform Invoices (GUIs) to these sellers. This article explains who is affected, how to verify your business status, and how to use the invoices you receive.

Key Points / What Sellers Need to Know

• 5% VAT applies to non-business sellers — Since May 1, 2017, Taiwan's government has required non-resident enterprises to charge 5% VAT on electronic services provided to individual (non-business) customers. Amazon collects this tax on applicable fees.
• Monthly tax invoices are issued — Starting May 1, 2020, Amazon began issuing monthly cloud GUIs to Taiwanese non-business customers, fulfilling a government mandate for non-resident enterprises.
• Corporate customers are exempt — If you hold a valid Unified Business Number (UBN), the 5% VAT charge and GUI issuance do not apply to you. Providing your UBN to Amazon is how you confirm your corporate status.
• GUIs double as lottery tickets — Taiwanese residents who receive cloud GUIs can participate in the government-run bi-monthly invoice lottery, with the chance to win cash prizes.
• Fees affected include selling fees and subscription fees — The VAT is applied to Amazon selling fees and monthly professional seller subscription fees for residents in Taiwan.

How Amazon Determines Your Customer Type

Amazon distinguishes between corporate and non-business customers based on whether you provide a valid Unified Business Number (UBN). The UBN is an 8-digit business identification number issued by Taiwan's government to registered businesses. If you have a UBN and submit it through Seller Central, Amazon will recognize you as a corporate customer and will not charge the 5% VAT on applicable fees. Without a valid UBN on file, Amazon treats you as a non-business individual customer and applies the tax accordingly.

How to Submit Your UBN in Seller Central

If you are a registered business in Taiwan, you can provide your UBN to Amazon through your Seller Central account. Log into Seller Central and navigate to your account settings. In the tax information section, click on VAT information, select Taiwan from the list of countries, and enter your 8-digit UBN. You will also need to accept and acknowledge the conditions outlined in the registration agreement. Once submitted, Amazon will update your account status, and the 5% VAT will no longer be applied to your fees.