Physical Stores in Trial Operation Must Complete Tax Registration
The Ministry of Finance’s Central Taiwan National Tax Bureau Puli Branch stated that if a business has a physical store, even if it is just for a trial operation, it must complete tax registration before starting the trial operation. However, if the business operates solely through online sales and the sales of goods do not reach NTD100,000 or the sales of services do not reach NTD50,000 in the same month, tax registration can be temporarily waived.
Online sellers reach the threshold for sales, they must immediately apply for tax registration at the National Tax Bureau. If monthly sales exceed NTD200,000, or if the National Tax Bureau determines that the business, based on its nature, category, or scale, is required to issue Government Unified Invoices(GUI), the Bureau will approve the use of GUI at a 5% tax rate and deduct related input tax.
If a business starts operating without completing tax registration, it may face a fine ranging from NTD3,000 to NTD30,000. If there is tax evasion, in addition to the tax must have been paid, a fine of up to five times the evaded tax amount may be imposed.
