Q1：What is the tax collection rate of VAT for an offshore electronic services business entity ?
A1：The tax rate for an offshore electronic services business entity  is 5%.

Q2：What are the scope and method of tax levy on an offshore electronic services business entity ?
A2：
1. An offshore electronic services business entity who sells electronic services to domestic individuals via its own website or sales electronic system and collects the full payment for the service shall file and pay business tax in accordance with Article 35 of the Business Tax Act.
2. A foreign enterprise, institution, group, or organization having no fixed place of business within the territory of the R.O.C. (hereinafter referred to as the foreign supplier A), which sells electronic services to the domestic individual 乙(note 1) via the website or sales electronic system set up by the offshore electronic services business entity B collects the full payment for the service:
(1)The sales of the service is used without a physical location:
a.The foreign supplier A is classified as an offshore electronic services business entity. If it shall apply for taxation registration in conformity with Subparagraph 1 of the preceding point, there supposed to file and pay business tax based on the full payment for the service from the purchaser乙in accordance with Article 35 of the Business Tax Act.
b.The service fee (e.g., administration fee or commission) charged by the offshore electronic services business entity B from the foreign supplier A is not subject to the scope of business tax levy by the R.O.C.
(2)The sales of the service is used at a physical location:
a.If the aforesaid location is within the territory of the R.O.C.:
(a)The foreign supplier A is classified as an offshore electronic services business entity. If it shall apply for taxation registration in conformity with the Subparagraph 1of the preceding point, there supposed to file and pay business tax based on the full payment for the service from the purchaser乙 in accordance with Article 35 of the Business Tax Act.
(b)The service fee (e.g. administration fee or commission) charged by the offshore electronic services business entity B from the foreign supplier A is not subject to the scope of business tax levy by the R.O.C.
b.If the aforesaid location is not within the territory of the R.O.C., this is not subject to the scope of business tax levy by the R.O.C.
3.The foreign supplier A sells electronic services to the domestic individual乙via the website or sales electronic system set up by the offshore electronic services business entity B, and the offshore electronic services business entity B collects the full payment for the service:
(1)The sales of services is used without a physical location:
a.The offshore electronic services business entity B who collects the full payment for the service from the purchaser乙shall file and pay business tax in accordance with Article 35 of the Business Tax Act.
b.The payment for the service charged by the foreign supplier A from an offshore electronic services business entity B is not subject to the scope of business tax levy by the R.O.C.
(2)The sale of services is used at a physical location:
a.If the aforesaid location is within the territory of the R.O.C.:
(a)The offshore electronic services business entity B who collects the full payment for the service from the purchaser乙shall file and pay business tax in accordance with Article 35 of the Business Tax Act.
(b)The price payment for the service charged by the foreign supplier A from an offshore electronic services business entity B is not subject to the scope of business tax levy by the R.O.C.
b.If the aforesaid location is not within the territory of the R.O.C., this is not subject to the scope of business tax levy by the R.O.C.
4.The domestic business entity甲(note 2) sells electronic services to the domestic individual乙via the website or sales electronic system set up by the offshore electronic services business entity B and collects the full payment for the service:
(1)The sales of service is used without a physical location:
a.The domestic business entity甲who collects the full payment for the service from the purchaser乙shall file and pay business tax in accordance with Article 35 of the Business Tax Act.
b.The domestic business entity甲who pays the service fee (e.g., administration fee or commission) to the offshore electronic services business entity B shall file and pay business tax in accordance with Paragraph 1, Article 36 of the Business Tax Act.
(2)The sale of services is used at a physical location:
a.If the aforesaid location is within the territory of the R.O.C.:
(a)The domestic business entity甲who collects the full payment for the service from the purchaser乙shall file and pay business tax in accordance with Article 35 of the Business Tax Act.
(b)The domestic business entity甲who pays the service fee (e.g., administration fee or commission) to the offshore electronic services business entity B shall file and pay business tax in accordance with Paragraph 1, Article 36 of the Business Tax Act.
b.If the aforesaid location is not within the territory of the R.O.C., this is not subject to the scope of business tax levy by the R.O.C.
5.The domestic business entity甲sells electronic services to the domestic individual乙via the website or sales electronic system set up by the offshore electronic services business entity B, and the offshore electronic services business entity B collects the full payment for the service:
(1)The sale of services is used without a physical location:
a.The offshore electronic services business entity B who collects the full payment for the service from the purchaser乙shall file and pay business tax in accordance with Article 35 of the Business Tax Act.
b.The domestic business entity甲who collects the payment for the service from the offshore electronic services business entity B shall file and pay business tax in accordance with Article 35 of the Business Tax Act.
(2)The sale of services is used at a physical location:
a.If the aforesaid location is within the territory of the R.O.C.:
(a)The offshore electronic services business entity B who collects the full payment for the service from the purchaser乙shall file and pay business tax in accordance with Article 35 of the Business Tax Act.
(b)The domestic business entity甲who collects the price payment for the service from the offshore electronic services business entity B shall file and pay business tax in accordance with Article 35 of the Business Tax Act.
b.If the aforesaid location is not within the territory of the R.O.C., this is not subject to the scope of business tax levy by the R.O.C.
6.The sales of cross-border electronic services in other transaction models not mentioned above are still to be subject to the levy of tax in accordance with the Business Tax Act. If there are any queries, please request the competent tax authority to ask the Ministry of Finance for further explanation.

Q3: Should an onshore business entity who collected price payment of electronic services from an offshore electronic services business entity  before April 30th, 2017 issue the Triplicate Uniform Invoice or the Duplicate Uniform Invoice after May 1st, 2017 selling cross-border electronic services?
A3： For an offshore electronic services business entity who uses the Input Documentary to declare Input Tax Credit pursuant to Article 38-3 of the Enforcement Rules of Value-added and Non-value-added Business Tax Act, the documents it shall submit shall be limited to those for the sales of electronic services to domestic individuals. It cannot declare Output Tax Credit when paying the onshore business entity and receiving the documentary before April 30th, 2017 because an offshore electronic services business entity does not need to make taxation registration and file a VAT return and pay VAT before the date mentioned above.

Q4：How does an offshore electronic services business entity file the VAT return and pay VAT when contracting with domestic individuals quarterly or yearly? One example is when the contract was signed before April 30th, 2017 and the foreign supplier received payment after May 1st, 2017.
A4：According to the regulations of "Time Limit for Issuing Sales Documentary Evidence,” a business entity which renders services should issue uniform invoices after receiving payment. For that reason, the offshore electronic services business entity should regard all payments which were received after May 1, 2017 as the sales amount and file the VAT return and pay the correct VAT. To remind you, the foreign supplier may be exempted from the issuance of uniform invoices from May 1st, 2017 to December 31st, 2018.

Q5：Should an offshore electronic services business entity  issue uniform invoices?
A5：An offshore electronic services business entity  may be exempted from the issuance of uniform invoices from May 1, 2017 to December 31, 2018 pursuant to Subparagraph 35, Article 4 of the Regulations Governing the Use of Uniform Invoices. It must file the VAT return and pay VAT.

Q6：How does an offshore electronic services business entity file the VAT     return?
A6：Having applied for taxation registration after May 1, 2017, an offshore electronic services business entity , whether or not it has sales, shall at the taxation registration platform of the Ministry of Finance  (https://www.etax.nat.gov.tw) to file a bimonthly tax return prior to the fifteenth day of the following period. For example:

taxable period (months)	Period of filing
1-2	3/1-15
3-4	5/1-15
5-6	7/1-15
7-8	9/1-15
9-10	11/1- 15
11-12	1/1-15 (the following year)

Q7：Can an offshore electronic services business entity deduct the input tax from the output tax?
A7：While an offshore electronic services business entity obtains the input documentary evidence from domestic business entities which are not nondeductible circumstances pursuant to Paragraph 1, Article 19 of the Business Tax Act and is obtained as a result of sales of electronic services to domestic individuals in conformity with Paragraph 1, Article 38 of the Enforcement Rules of Business Tax Act, the offshore electronic services business entity may deduct input tax from the output tax.

Q8：How does an offshore electronic services business entity register Input Tax and Output Tax?
A8：
1. The registration of Output Tax should be made collectively on a monthly basis. However, for declaration of Input Tax Credit, the collective registration should be made respectively based on the type of business entity according to the source of Input Tax.
2. The registration of data of Certificate of Sales Returns or Allowances should be made collectively on a monthly basis. However, if the original Output Tax data contain the declaration of Input Tax Credit, the collective registration should be made respectively based on the type of business entity according to the source of Input Tax.
3. When the business entity deducts the Input Tax from the Output Tax, the Input Tax data should be registered sale by sale according to the Input Documentary received.

Q9：Is an offshore electronic services business entity allowed to file the VAT return and pay VAT in any currency?
A9：The sales amount denominated in any currency should be converted into the New Taiwan Dollar to file a VAT return including tax payable or overpayment according to the VAT Act.

Q10：How is the sales amount denominated in any currency converted into the New Taiwan Dollar when filing a VAT return?
A10：When an offshore electronic services business entity selling electronic services in foreign currency files the sales amount and business tax payable or overpaid pursuant to Article 35 of the Business Tax Act, the aforesaid amounts shall be converted into New Taiwan dollars at the spot buying exchange rate (if unavailable, the cash buying exchange rate should be adopted) of the foreign currency closing rates as announced by the Bank of Taiwan on the following dates:
(1)The last day of the taxable period
(2)When the last day of the taxable period falls on a Sunday, national holiday, or other holiday, the last day shall be the day following that day, and if the last day of the taxable period falls on Saturday, the last day shall be the Monday of the following week.

taxable period (months)	The date for exchange rate
1-2	2/28（or 29）
3-4	4/30
5-6	6/30
7-8	8/31
9-10	10/31
11-12	12/31

Q11：How does an offshore electronic services business entity  inquire about the exchange rate on the last day of the taxable period?
A11：An offshore electronic services business entity  can access the taxation registration platform of the Ministry of Finance (https://www.etax.nat.gov.tw) to inquire about the exchange rate.

Q12：How does an offshore electronic services business entity  pay VAT?
A12：An offshore electronic services business entity  filing a VAT return including tax payable can choose one of the following payment methods:
1. Payment by a designated bank account remittance: An offshore electronic services business entity  should remit the tax payment calculated in New Taiwan Dollars to the special account (beneficiary bank: BANK OF TAIWAN CHENG CHUNG BRANCH, beneficiary: National Taxation Bureau of Taipei, Ministry of Finance A/C No：045036070263) and fill in the remark column of remittance sheet details of payment including name of business entity, business Id number, and bimonthly period of business tax returns (including year and month). An offshore electronic services business entity  shall pay the relevant service charges.
2. Cash payment: An offshore electronic services business entity  can access the taxation registration platform of the Ministry of Finance (https://www.etax.nat.gov.tw) to print the tax bill with barcodes and pay VAT at the Commissioned Bank for tax collection in cash or by check. A tax bill under NT$30,000 can be paid at a convenience store in cash.

Q13：How does an offshore electronic services business entity apply for correction to the contents of the VAT return?
A13：If it is within the filing period, an offshore electronic services business entity needs to access the taxation registration platform of the Ministry of Finance (https://www.etax.nat.gov.tw) again and upload the correct data. If it is past the filing period, or it is to correct data that do not fall within the current period, the  offshore electronic services business entity has to access the taxation registration platform of the Ministry of Finance (https://www.etax.nat.gov.tw) to apply for correction.

Q14：When should an offshore electronic services business entity file a tax return and pay VAT in case of a merger, ownership transfer, dissolution, or nullification of its business?
A14：An offshore electronic services business entity services shall access the eTax Portal, Ministry of Finance (https://www.etax.nat.gov.tw) to file the VAT return and pay VAT within fifteen days after the occurrence of such an event.

Q15：How should a VAT return including tax payable filed by an offshore electronic services business entity be converted into the New Taiwan Dollar in case of a merger, ownership transfer, dissolution, or nullification of its business?
A15：
1. The sales amount denominated in any currency should be converted into the New Taiwan Dollar subject to The Bank of Taiwan’s buying spot exchange rate (closing rate) on the last day of the previous taxable period before the occurrence of such an event. If The Bank of Taiwan’s buying spot exchange rate of the currency is not available, the cash exchange rate can be used instead.
2. If the last day of the taxable period falls on a Sunday, national holiday, or any other holiday, the day following that day shall take its place, and if the last day of a period falls on a Saturday, its last day shall be the Monday of the following week.