Global Daily Tax News, Taiwan Introducing New VAT Reporting Rules For Online Content, (Mar 9, 2026)

Taiwan's National Taxation Bureau has released a statement highlighting new obligations on influencers and social media content producers to justify application of a zero rate of business tax (VAT) on their supplies overseas.

The tax agency has said it will undertake a compliance drive soon to challenge those earning income from producing online content and not remitting value-added tax in respect of domestic supplies.

The relevant rules require that those applying a zero rate of consumption tax on supplies rendered overseas must prepare and retain documentation demonstrating the receipt of income from overseas and documenting what portion of revenue was derived from overseas and from Taiwan, based among other things on viewership statistics.

Until June 30, 2026, underreported tax amounts due to non-compliance will not be subject to penalties, the tax agency has said. However, penalties will apply after this date, and the first declarations from these taxpayers will be due before July 15, 2026.

The tax agency stated: "[...] in recent years, YouTubers, video creators, and other online celebrities have emerged, frequently publishing their creations or information (hereinafter referred to as performance services) through social media or video platforms. They authorize the platforms to use and generate revenue, and receive income from the platforms in the form of advertising revenue, subscription revenue, or audience sponsorships. The Ministry of Finance has issued the 'Operational Guidelines for the Levy of Business Tax on Individuals' Frequent Online Creation or Information Sharing,' providing a basis for filing and paying business tax. The Bureau reminds that if domestic online celebrities are approved as business operators using uniform invoices, and their income from overseas platforms is derived from the viewing (consumption) behavior of overseas viewers, and they claim to be eligible for the zero business tax rate as 'export services,' they must provide supporting documents proving that the performance services were used overseas for verification by tax authorities."

The tax agency stated: "[...] according to Article 7 of the Value-Added and Non-Value-Added Business Tax Act, businesses selling services related to exports, or providing services domestically but using them abroad, are eligible for a zero tax rate. However, if online influencers claim that they receive revenue sharing from overseas platforms for providing performance services, and that this revenue is derived from overseas viewers and thus eligible for a zero tax rate, they should, in accordance with Article 11, Paragraph 2 and Article 11-1 of the Enforcement Regulations of the same Act, submit not only foreign exchange documentation but also documentation from overseas e-commerce businesses that have legally registered their tax registration, proving that the services were used abroad. This is to identify the overseas source of viewers (e.g., platform settlement statements, backend reports showing viewing or revenue by country/region, payment receipts, etc.) to correctly determine the applicable tax rate. If sufficient supporting documentation is not provided, and it cannot be determined that the services were used abroad, the tax should be handled according to the applicable regulations to avoid false declarations."

"The bureau urges online influencers to review their income types and audience sources, and to pay business tax in accordance with regulations. For transactions involving zero-tax rates, they must prepare and properly store supporting documents proving foreign exchange income and the ability to identify domestic and international audience sources as described above. Considering the diverse nature of online influencer transactions and the recent implementation of the new tax system, the Ministry of Finance has set a guidance period until June 30, 2026 (tax declarations must be made before July 15, 2026). During this period, any underreporting of tax amounts due to negligence will be exempt from penalties."