Frequently asked questions about Taiwan VAT

What is VAT?

VAT is the abbreviation of Value Added Tax. VAT is in general due when goods and/or services are sold. It applies to most goods and services supplied for use or consumption in Taiwan. VAT is a consumption tax because it is ultimately borne by the final consumer.

Who must pay VAT?

Video conferencing services and telecommunication (in the form of electronic communication services) supplied by Zoom fall within the VAT rules for non-resident suppliers (such as Zoom) of electronically supplied services (“ESS”). As such, Zoom is required to charge VAT at the applicable rate to customers that are not registered for VAT in Taiwan.

If you are VAT registered in Taiwan, you should provide your VAT registration number to Zoom (see ‘How do I enter my VAT registration number?’ below for details on how to do this). If the VAT registration number is valid, then no VAT will be charged on the supplies made to you by Zoom. If you do not have a valid VAT registration number, then VAT will be charged on the supplies made to you by Zoom.

Why am I being charged VAT?

Zoom is registered for VAT in Taiwan as a non-resident supplier of ESS. As such, Zoom is required to collect and remit VAT on supplies made to non-VAT registered customers in Taiwan.

What is a VAT registration number?

A VAT registration number is an 8-digit number issued by the Taiwan Ministry of Economic Affairs to VAT registered persons in Taiwan.

How do I enter my VAT registration number?

To provide your VAT, follow the steps below depending on where your billing portal is located in the left navigation menu of the Zoom web portal. Not sure how to identify where your billing portal is located? Learn how to locate your billing settings.

Zoom performs periodic validation checks of customer VAT numbers to ensure that the VAT number remains valid. If, during these periodic validations, it is identified that your VAT number is no longer valid, Zoom may automatically update your account so that future invoices are subject to VAT. Where this happens, VAT will be charged on all future invoices until such time that a valid VAT number is provided.

You are required to notify Zoom if there is any change to your VAT registration status.

Does Zoom have a VAT registration number in Taiwan?

Yes, Zoom’s Taiwanese VAT registration number will be shown on the invoice or cloud Government Uniform Invoice (“GUI”) it issues to you.

Does Zoom issue cloud Government Uniform Invoices (“GUIs”)?

Yes, Zoom issues GUIs to customers in Taiwan that are not registered for VAT or have not provided a valid VAT registration number at the time of invoicing. Each GUI issued by Zoom contains a serial number that may be used to participate in the GUI lottery.

The GUI will be sent to your “Bill To” email address and made available on the Zoom billing portal. Zoom uses your “Bill To” email address as part of the GUI generation and therefore it is important that your “Bill To” email address in the Zoom billing portal is the same as the email address linked to the Ministry of Finance “Claiming Reward App” and “The E-Invoice Platform of Ministry of Finance”, otherwise, you may not be able to participate in the lottery.

For your convenience of checking GUIs and claiming rewards, please download the mobile App of the Ministry of Finance or go to "The E-Invoice Platform of Ministry of Finance" (https://einvoice.nat.gov.tw) and consolidate the carrier (consumer email address) of your GUI with the barcode on your cell phone so as to have the Ministry of Finance provide you with the services of invoice inquiry, automatic prize checking and notice sending if a prize is won.

Please note that non-resident suppliers of ESS are only required to issue GUIs to customers that are not registered for VAT in Taiwan. As such, no GUI will be issued to customers that have provided a valid VAT number to Zoom prior to the issuance of an invoice.

How is Zoom determining which customers VAT applies to?

If a customer's ‘Sold To’ location is in Taiwan, and the customer has not provided a valid VAT registration number, Zoom will charge VAT on its GUI issued to you.

This information is subject to cross-referencing against other data to verify that the ‘Sold To’ country is accurate.

It is your responsibility as a customer to ensure that your ‘Sold To’ address is accurate.

Is there a minimum threshold purchase amount before VAT is applied?

No, where a customer in Taiwan has not provided a valid VAT registration number, Zoom will charge VAT on all supplies made to you.

Are there any VAT obligations for me as a customer?

If you have provided a valid VAT registration number to Zoom, no VAT will be charged on the supplies made to you. However, you may be required to self-assess the VAT due under the so-called “reverse charge mechanism”. There are no VAT filing obligations for non-VAT registered customers in Taiwan; however, Zoom will issue GUIs to non-VAT registered customers (see ‘Does Zoom issue cloud Government Uniform Invoices (“GUIs”)?’ above for more details).

What if I have a VAT registration number and forget to enter it?

Your VAT registration number may be entered at any time. If entered before the next invoice, Zoom will not charge VAT on the next invoice or future invoices issued to you. If no valid VAT registration number is entered at the time the next invoice is issued, VAT will be charged until a valid VAT registration number is provided. No retrospective adjustments will be made where you did not provide your valid VAT number to Zoom.

Decision tree – My “Sold To” address is Taiwan; will I be charged VAT?

Disclaimer

Every customer is unique and so are their specific tax circumstances. The above stated information should not be considered as tax advice, but as a general overview of relevant VAT rules in Taiwan. Zoom cannot provide you with tax advice for your individual situation, and therefore we strongly recommend speaking with a professional tax advisor for tailored advice.