According to the National Taxation Bureau of Kaohsiung, Ministry of Finance, if an individual sells goods or services through the Internet for profit and the sales amount reaches the minimum taxation threshold for business tax (NT$80,000 for sales of goods or NT$40,000 for sales of services), he/she should apply for taxation registration to the National Taxation Bureau by the end of the following month at the latest.
The Bureau further explained that, online transactions are flourishing in the era of the pandemic, and sellers do not need a physical store to sell goods or services. If the sales volume of the month does not reach the aforementioned minimum taxation threshold for business tax, the seller may be temporarily exempt from applying for taxation registration to the National Taxation Bureau. However, if the sales amount of the month reaches the minimum taxation threshold for business tax, taxation registration is required.
For example, Ms. Zhang has been selling maternal and baby products on an online sales platform since February 1, 2022. Her sales in February were NT$60,000, which did not reach the minimum taxation threshold for business tax, application for taxation registration to the National Taxation Bureau is not yet required. However, the sales amount of NT$140,000 in March has reached the minimum taxation threshold for business tax, so Ms. Zhang should apply for taxation registration to the National Taxation Bureau.
In particular, the Bureau added that it would be too harsh to require individual sellers to have taxation registration immediately upon reaching the minimum taxation threshold for business tax, considering that online sales platforms have the characteristic of settling the sales of sellers on a periodic basis. The Ministry of Finance stipulates that in the aforementioned case of Ms. Zhang, as long as she completes her taxation registration with the National Taxation Bureau before the end of the month following the sales amount reaching the minimum taxation threshold for business tax (April 30, 2022), or if she is notified to complete the taxation registration by the National Tax Bureau before that date and she does comply in accordance with the deadline, the National Taxation Bureau will levy supplemental business tax on the sales amount from the first day of the month in which the minimum taxation threshold is reached to the date of registration, and she is exempt from penalties stipulated under Article 45 and Subparagraph 1, Paragraph 1, Article 51 of the Value-added and Non-value-added Business Tax Act. If the taxation registration is completed or it is found by the National Taxation Bureau after that date, tax supplementary payment and penalties will be imposed, except for those who meet the criteria set in Article 48-1 of the Tax Collection Act.
The Bureau reminded that sellers of goods or services on the Internet should have taxation registration if their monthly sales exceed the minimum taxation threshold for business tax to avoid penalties.
Contact: Mrs. Zhang, Revenue Officer of the forth Examination Division
TEL: 07-7256600 ext.7315