What Is Taiwan VAT for Small Businesses Selling Goods?
A: There are 4 criteria of a small business entity as below:
- The business scope is small
- The monthly sales amount is lower than NTD$200,00
- The monthly sales have been verified by the tax authority
- Subject to tax registration if start to run the business
A: It will depend on the monthly sales amount. If your monthly sales reach NTD$80,000, you will need to start to pay VAT payable.
A: The VAT rate is 1% of the monthly sales. For example, if your monthly sales are NTD$80,000, you will be subject to NTD$800 per month and the payment should be made on a quarterly basis.
A: Yes, you can claim input VAT to offset the VAT payable. The deductible rate is 10% of input VAT you received from the business expenses.
