Taiwan VAT / Sales Tax
Detailed vat / sales tax rates and rules for Taiwan in 2026.
VAT / Sales TaxTWD
Taiwan levies a business tax (VAT) at a standard rate of 5%, one of the lowest VAT/GST rates in Asia. Exports are zero-rated. Certain items are exempt, including land sales, medical services, educational services, and financial services (which are subject to a separate gross receipts tax). The low VAT rate is a deliberate policy to maintain economic competitiveness.
Standard Rate
5%
Registration Threshold
Monthly sales exceeding TWD 80,000 for goods or TWD 40,000 for services
Reduced Rates
0% — Exports, international transportation, and services provided to entities in bonded zones
How Taiwan VAT / Sales Tax compares
Taiwan’s standard VAT / sales tax rate of 5% is the 171st highest of 203 countries TaxAtlas tracks, below the global average of 13.7% and Asia’s regional average of 9.6%.
Taiwan
5%
Asia average
9.6%
Global average
13.7%
