Overview

Since May 1, 2017, the Taiwanese government has required non-resident service providers — including Amazon — to collect Value Added Tax (VAT) on remote services delivered to Taiwan residents. For Amazon sellers based in Taiwan, this means a 5% VAT is applied to selling on Amazon fees unless the seller provides a valid Unified Business Number (UBN) proving they are VAT-registered in Taiwan.

Key Points / What Sellers Need to Know

• 5% VAT rate applies — Amazon charges Taiwan-resident sellers a standard 5% VAT on their selling fees if no valid UBN is on file.
• UBN exemption available — Sellers who are VAT-registered in Taiwan and provide their 8-digit Unified Business Number to Amazon will not be charged the 5% VAT on selling fees.
• Non-residents are not affected — If you are not a Taiwan resident, your Amazon selling fees are not subject to Taiwan VAT collection.
• Effective since May 2017 — Amazon has been calculating and collecting Taiwan VAT on fees since May 1, 2017.
• Refunds are possible — Sellers who were charged VAT before submitting their UBN can request a refund, though the process may take up to 90 days.

How It Works

Under Taiwanese tax legislation enacted in 2017, non-resident companies providing remote services to Taiwan residents must collect and remit VAT. Amazon qualifies as a non-resident service provider, and the selling fees it charges to Taiwan-based merchants are classified as remote services. As a result, Amazon is legally required to collect a 5% VAT on those fees and remit it to the Taiwanese tax authority. The VAT is calculated at the time an order is placed and charged to the seller's account when the order ships. This timing distinction is important because it can cause situations where VAT is collected on orders placed before a seller updates their account information.

Providing Your UBN to Amazon

Taiwan-based sellers who are registered for VAT can avoid the 5% charge by submitting their Unified Business Number directly through Seller Central. To do this, log in to Seller Central, navigate to your account settings, and locate the VAT information section. Select Taiwan from the list of countries, then enter your 8-digit UBN. You will also need to confirm or add a business address and accept the conditions in the VAT registration agreement. Once your UBN is on file and validated, Amazon will stop applying VAT to your selling fees going forward. Sellers who are not yet VAT-registered can apply for a UBN online through the Taiwanese government or consult a tax adviser for assistance with the registration process.