Beginning 1 September 2017, the Taiwanese government has implemented legislation requiring non-residents who are providing "remote services" to begin collecting Taiwanese VAT on these services when they are provided to Taiwanese residents or persons who are not registered for VAT. In this context, remote services provided by Amazon are the Selling on Amazon fees. Unless a seller has provided Amazon with its Taiwanese Unified Business Number (UBN) as evidence that it is VAT-registered in Taiwan, the rule requires Amazon to collect and remit Taiwanese VAT at a standard rate of 5% on Selling on Amazon fees paid by sellers who are residents of Taiwan. Taiwanese sellers who provide Amazon with their UBN will not have a VAT of 5% applied to their Selling on Amazon fees.
To provide Amazon with your Taiwanese UBN:
To learn more about how this regulation affects your Selling on Amazon account, visit the Taiwanese Taxation Administration, Ministry of Finance website.
If you are a resident of Taiwan, Selling on Amazon fees charged to your selling account are subject to Taiwanese VAT unless you are VAT-registered and have provided Amazon with a Taiwanese Unified Business Number (UBN) as evidence that you are VAT-registered in Taiwan.
You can register for a Taiwanese Unified Business Number online or consult your tax and legal adviser. Please note that we will charge you VAT unless you are registered for VAT in Taiwan and have provided your UBN to us.
If you are not a resident of Taiwan, Selling on Amazon fees through your selling account will not be subject to Taiwanese VAT collection. Consult your tax adviser to help you understand if you have any Taiwanese VAT obligations in Taiwan.
Amazon will charge Taiwanese sellers a standard rate of 5% VAT on their Selling on Amazon fees if the seller does not have a valid Taiwanese UBN on file as evidence that it is VAT-registered. Amazon began calculating and collecting Taiwanese VAT on fees effective 1 September 2017.
Amazon will not calculate and collect Taiwanese VAT if you provided a valid Taiwanese UBN as evidence that you are VAT-registered in Taiwan.
However, there may have been VAT collected on certain orders due to timing. Amazon calculates Taiwanese VAT when an order is placed and charges it to your account when the order is shipped. Therefore, Taiwanese VAT may have been collected on orders placed prior to the time you provided your Taiwanese UBN.
Amazon calculates Taiwanese VAT on fees when an order is placed, and collects it when an order is shipped. If the information you provided at the time of shipment indicated you were a resident of Taiwan, then Taiwanese VAT will have been collected. This might have occurred if there were pending orders before you updated your current address and payment information.
Go to Seller Account Information and review each section to ensure that all of your information is complete and accurate.
Amazon is required to charge and remit Taiwanese VAT based on the information in your seller account. At the time the VAT was calculated and collected, Amazon had enough information to associate your account with Taiwan. Amazon cannot refund Taiwanese VAT without a valid Taiwanese UBN on file.
You may request a refund for previously charged Taiwanese VAT once you have provided Amazon with a valid Taiwanese UBN as evidence that you are VAT-registered in Taiwan.
To request a refund:
You will receive an update for your case when your request has been processed. The update will provide the estimated date when you can expect to receive a refund in your seller account if your request is approved.
Amazon is not required to issue tax invoices under the Taiwanese legislation. All monthly activity can be found in date range reports. You can view these reports by going to Seller Central > Reports > Payments > Date Range Reports > and selecting a transactional report for a particular timeframe.
While we are committed to helping sellers, we do not provide tax advisory or compliance services. Please contact a tax adviser.