The primary factor for claiming VAT refund in Taiwan is the issuance of government uniform invoices to the buyer. In the case of non-resident entities with a fixed place of business that have registered for VAT (required), they are able to claim VAT refund.
Non-residents with no fixed place of business in Taiwan are generally not allowed to register for VAT (except in the case of electronic services above) and are therefore generally unable to claim VAT refund. However, if a non-resident entity incurs input VAT in relation to the purchase of goods or services for the purpose of taking part in commercial exhibitions or other temporary business activities in Taiwan, they can claim VAT refund within one year if:
- Their total VAT incurred in Taiwan is at least TWD 5,000 within one fiscal year;
- They obtain and preserve documentary evidence for the purchases made;
- They have no fixed place of business within the territory of Taiwan;
- Their business registration or similar registration has been approved by the competent authority-in-charge in the respective country (region) (not applicable if such registration is not required under the law of the respective country (region) or no business tax or similar is levied in the country (region));
- Reciprocal treatment or exemption from VAT or similar taxes is provided by the respective country (region) to Taiwan entities performing similar activities.
With respect to the reciprocal treatment condition, qualifying countries (regions) include: Australia, Austria, Bahrain, Belgium, Finland, France, Germany, Hong Kong, Ireland, Israel, Kuwait, Liechtenstein, Macau, the Netherlands, Qatar, Saudi Arabia, Slovenia, Switzerland, and the United Kingdom.
Application for refund can be made via the Ministry of Finance eTax Portal.