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Understanding Taiwan's VAT and Government Uniform Invoice System
Introduction
All sales of goods and services in Taiwan, as well as the importation of goods into Taiwan, are subject to VAT. Businesses are required to issue Government Uniform Invoices (GUI) to their customers at the time goods are sold or services are rendered.
Output VAT is the tax that customers pay on sales transactions, while Input VAT is the tax that businesses pay on purchase transactions. The amount of VAT payable or overpaid by a company is the difference between the output tax and input VAT in a given tax period. A company, regardless of whether it has sales, must file a bimonthly VAT return on its sales amount and VAT payable or overpaid for the preceding two months with the competent tax authority, no later than the fifteenth day of the following period. For example, the VAT filing due date for the January–February period is March 15, and the due date for the March–April period is May 15.
Government Uniform Invoice(GUI) overview
Except for a few specifically exempt businesses, all companies are required to issue Government Uniform Invoices (GUI) for their sales of goods or services. Private or company-designed invoices are not permitted as substitutes for the GUI.
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If the purchaser is a business entity, the business tax (VAT) must be stated separately from the sales amount on the GUI.
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If the purchaser is not a business entity, the business tax does not need to be itemized.
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A GUI issued by a non-VAT business entity only needs to state the sales amount.
The Uniform Invoice system is managed by the Taiwanese tax authority, which assigns unique invoice numbers for every GUI to track company revenues. These invoice numbers must be used within a two-month period.
Five types of Government Uniform Invoices (GUI)
(1)Triplicate GUI:
Invoices issued to business entities. Three copies are required for tracking and auditing purposes:
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First copy (Retention Copy): kept by the issuer.
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Second copy (Deduction Copy): provided to the purchaser for tax deduction or reduction declarations under the VAT Act.
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Third copy (Receipt Copy): given to the purchaser as an accounting voucher.
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(2)Duplicate GUI:
Duplicate GUIs are issued to individual consumers or foreign companies. Unlike the triplicate form, the duplicate version has only two copies:
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First copy (Retention Copy): kept by the issuer.
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Second copy (Receipt Copy): given to the purchaser as proof of purchase.
If you sell goods or provide services to a foreign company, you are still required to issue a duplicate GUI, even if your overseas client does not request it.
(3)Computerized Register GUI:
A Computerized Register GUI is issued when a business uses a cash register or point-of-sale (POS) system to record its sales of goods or services.
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These GUIs are printed automatically by the POS system and usually appear as receipts.
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They are widely used in B2B industries.
Starting January 1, 2021, Computerized Register GUIs were officially discontinued in Taiwan. The National Taxation Bureaus no longer allocate serial numbers for this type of invoice. Businesses previously using computerized register GUIs have since been required to switch to other formats, such as electronic GUIs or cash register GUIs, in line with Taiwan’s move toward digital invoicing.
(4) Cash Register GUI
A Cash Register GUI refers to receipts printed directly from a government-approved cash register.
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These are commonly used by small-scale retailers and businesses where a simplified invoicing system is sufficient.
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Unlike computerized register GUIs (linked to advanced POS systems), cash register GUIs are issued through basic cash registers that have been pre-registered with the tax authority.
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Each receipt still contains a unique government-assigned invoice number for revenue tracking and VAT compliance.
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They can also be used for the uniform invoice lottery, just like other GUI types.
💡 Example: A printed receipt from a small neighborhood shop or kiosk using a registered cash register.
(5)Electronic GUI:
The Electronic GUI is a digital version of the Government Uniform Invoice. It is now the mainstream invoice type in Taiwan, especially after the phase-out of computerized register GUIs in 2021.
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Issuance: Created, transmitted, and stored electronically via the internet or other digital systems.
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Files required: Businesses must generate three digital files for each e-invoice:
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Retention file – kept by the issuer.
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Receipt file – provided to the purchaser.
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Certification file – kept for tax verification.
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Usage: Commonly used in e-commerce, retail chains, and digital service providers.
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Benefits:
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Reduces paper usage and storage costs.
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Simplifies reporting and compliance.
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Customers can check e-invoice records on the Ministry of Finance e-invoice platform.
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Fully eligible for the uniform invoice lottery.
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💡 Examples: Online shopping platforms such as Shopee, PChome, or large retailers that email or store invoices digitally.
3. Value Added Tax (VAT) overview
Scope of Taxation
Except for entities specifically designated as non-VAT, all business entities fall within the scope of the VAT system. VAT is charged on the value-added to goods or services at each stage in the production and distribution chain (see below for a sample VAT calculation.)
VAT Tax Rate: 5%
Refund of Overpaid VAT
The amount of overpaid VAT claimed by a business entity will be refunded after verification by the tax authorities when:
(1)Overpaid VAT is on goods or services subject to zero-rated VAT(0% VAT).
(2)Overpaid VAT is on purchased fixed assets.
(3)Overpaid VAT when a business applies to cancel registration due to merger, transfer, dissolution, or cessation.
Overpaid VAT resulting from circumstances other than the above may be offset against future business tax payable. Business entities with special situations can request approval from the MOF to receive tax refunds.
VAT Calculation
Output VAT
This is the VAT a business collects from customers when selling goods or providing services. The taxable sales amount includes all compensation received, not just the product or service price, but also any expense reimbursements related to the transaction.
Input VAT
This is the VAT a business pays when purchasing goods or services. Input VAT can be deducted against output VAT, provided proper supporting documents are kept. Businesses must maintain records showing:
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GUI invoices for purchases of goods and services.
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GUI invoices for deemed sales of goods or services.
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Other tax authority–approved documents specifying VAT amounts.
If input VAT exceeds output VAT, the company records a VAT credit.
VAT Exempt and Zero-Rated VAT
VAT exempt vs. zero-rated VAT: Exempt supplies are not subject to VAT, and input VAT cannot be reclaimed.
Zero-rated supplies are taxed at 0% but still allow input VAT recovery. See our VAT Exempt and Zero-rated VAT.
Examples from VAT-Exempt
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Sale of land.
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School textbooks approved by the Ministry of Education.
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Newspapers, magazines, and broadcasting programs (excluding advertisements).
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Unprocessed agricultural, fishery, and livestock products.
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Rice and flour sales, and rice milling services.
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Fertilizers, agricultural machinery, and related supplies.
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Gold bars, coins, and pure gold jewelry.
Examples from Zero-Rated VAT
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Exported goods.
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Services provided in Taiwan but used abroad (export services).
"For more on exporting services, see our Zero-rated VAT on Exporting Services -
Duty-free shop sales to outbound travelers.
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Goods/services sold to bonded zones or free trade areas for export.
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International transportation by qualifying foreign carriers.
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Sales and repairs of international transport vessels and aircraft.
VAT filing
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VAT returns must be filed every two months.
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The deadline is the 15th of the month following the reporting period.
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Example: For sales in January–February, the VAT return and payment are due by March 15.
Non-Deductible VAT
Not all GUIs can be used to deduct VAT. The following are non-deductible:
(1)The goods or services purchased are not for the use of principal and ancillary business operations.
(2)Goods or services for social relations purposes. The business meal, travel expenses, and accommodation expenses are also not VAT-deductible.
(3)Goods or services rewarded to individual employees. Employee benefits, gifts to employees, and staff catering are not VAT-deductible.
(4)Passenger cars for personal use, except for business trucks.
(5)The invoices from other countries are not deductible.
(6)Receipts, rent, and salary cannot be deducted, because there is no VAT paid.
Invoicing requirements
To comply with Taiwan VAT rules and avoid penalties, all invoices must meet Government Uniform Invoice (GUI) requirements. Customers receiving incorrect GUIs may face difficulties when reclaiming VAT. A valid GUI must include:
Date of issue
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Pre-printed sequential GUI number
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Your company's VAT ID number(seller's VAT ID number)
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Your customer's VAT ID number(buyer's VAT ID number)
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Full name of both companies
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The product name, quantity, and price of the goods and services
FAQ1. What businesses can be exempt from issuing GUIs?
Answer:
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Small-scale business entities (with annual revenue under the VAT threshold, subject to approval by the tax authority).
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Taxi drivers and small passenger transport services.
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Street vendors and night market stalls.
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Farmers, fishermen, and other individuals selling unprocessed agricultural or fishery products.
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Certain professionals (such as doctors or lawyers operating as sole proprietors, depending on circumstances).
FAQ2. Can my company issue its own invoices instead of GUI?
Answer:
If your company is not GUI-exempt, your company must use the Government Uniform Invoice.
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