Taiwan Business Tax (VAT) 5% Calculator
Taiwan's business tax (營業稅) applies to most goods and services at the standard 5% rate. Use this tool to add 5% tax to a net amount, or extract the embedded 5% tax from a tax-inclusive price.
Taiwan Business Tax — How the 5% Works
Taiwan's business tax is a VAT system administered by the National Taxation Bureau. The standard rate of 5% applies to most domestic sales of goods and services. Suppliers issue Government Uniform Invoices (統一發票) to track transactions. Specific industries — banking, insurance, restaurants without uniform invoices — use a gross-receipts business tax instead. Zero-rated supplies include exports and international transport. Source: 財政部 mof.gov.tw.
Adding vs Extracting Tax
Add mode: Gross = Net × 1.05. If a service costs NT$10,000 net, the tax-inclusive price is NT$10,500 with NT$500 of business tax. Extract mode: Net = Gross / 1.05. To extract tax from a NT$10,500 receipt, divide by 1.05 to get NT$10,000 net and NT$500 tax. The extract factor is 1/21 of gross.
Government Uniform Invoice (統一發票) System
Each transaction must be recorded on a 統一發票 (uniform invoice). Buyers can use their carrier (mobile barcode, EasyCard, Citizen Digital Certificate) to receive electronic invoices. Each invoice carries a unique 8-digit number entered in the bi-monthly invoice lottery — winning numbers offer prizes from NT$200 to NT$10 million. Source: National Taxation Bureau.
VAT Filing Deadlines for Taiwan Businesses
Business taxpayers file bi-monthly returns: Jan-Feb due Mar 15, Mar-Apr due May 15, etc. Small businesses (revenue < NT$200,000/month) file quarterly with simplified 1% rate. Late payment incurs 1% per 2-day delay capped at 15%. Source: mof.gov.tw.
Frequently Asked Questions
What is Taiwan's VAT rate in 2027?
Taiwan's standard business tax (VAT) rate is 5%. Zero-rated supplies: exports, international transport. Reduced gross-receipts business tax applies to banks, insurance and certain restaurants.
How to extract VAT from a Taiwan invoice?
Divide the gross amount by 1.05. Example: NT$10,500 gross / 1.05 = NT$10,000 net + NT$500 VAT. The extract ratio is 1/21 (≈4.76%) of gross.
Are exports VAT-exempt in Taiwan?
Exports are zero-rated, not exempt. Exporters can claim input VAT credits, making them VAT-neutral. Documentation required: customs declaration, bill of lading.
Do foreign tourists get VAT refund?
Yes. Foreign visitors who buy NT$2,000+ from a Tax Refund Shopping (TRS) merchant on a single day can claim refund at airport before departure. Refund is approximately 4% of purchase (5% VAT minus 1% admin fee).
When are Taiwan business tax returns due?
Bi-monthly: returns due by the 15th of the month after each two-month period. Small businesses below NT$200k monthly may opt for quarterly filing with simplified 1% rate. Source: National Taxation Bureau.