For VAT purposes, the supply of goods is defined in Taiwan as the transfer of ownership of goods for consideration, which can included cash or other goods. The base for VAT on the supply of goods is the sales amount including consideration made and expense reimbursements.

If the goods are sold by a non-resident with no fixed place of business in Taiwan, the buyer of the goods in Taiwan is responsible for reporting the purchase and calculating the VAT on its VAT return. The non-resident has no responsibility.

If a non-resident does have a fixed place of business, the fixed place of business is required to register for VAT, handle reporting, and provide government uniform invoices for the purchaser of goods. This must be done regardless of whether the goods are sold by the non-resident directly or through their fixed place of business.

The standard VAT rate on goods is 5%.