The business tax or VAT system in Taiwan is generally similar to many European countries. Except for specified in the tax regulations, VAT is levied on the sales of goods and services within the territory of Taiwan at each stage of supply chain. The business tax levied on imported goods are calculated at the prescribed tax rate and the gross value after custom duty, commodity tax, or tobacco and alcohol tax if applicable. The business tax or VAT rate is summarized as table below for reference.
A business entity, regardless of whether it has sales or not, shall file with and pay to the tax authority in a bi-monthly basis. The filing due date is the 15th day of each month.