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Taiwan VAT Late Filing Penalties Explained

July 7, 2025
Taiwan VAT Late Filing Penalties Explained
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The Southern District State Taxation Bureau of the Ministry of Finance in Taiwan released a public notice explaining the reporting rules for businesses applying for a suspension of their activities or those that did not generate any revenue during the reporting period. The notice emphasizes that even in these cases, any reporting violations will be penalized for late reporting.

Reporting Requirements and Penalties

The Ministry of Finance stated that, according to the Value-added and Non-value-added Business Tax Act, VAT returns must be filed within 15 days after the end of each two months, together with all necessary documents and information about any sales, tax payable, or overpaid tax. Failing to comply with these reporting rules will result in penalties.

If the tax return is submitted within 30 days after the 15-day deadline passes, a late fee of 1% of the due tax is charged every two days, with a minimum penalty of TWD 1,200 (around USD 41) and a maximum of TWD 12,000 (around USD 410). For late filing that exceeds the 30-day limit, a penalty of 30% of the due taxes is imposed, with a minimum penalty of TWD 3,000 (approximately USD 100) and a maximum of TWD 30,000 (around USD 1,030).

In cases when there are no due taxes but a taxable person files a late tax return, a penalty of TWD 1,200 is imposed if the return is submitted within 30 days from the due date. If a return is filed after the 30-day period from the due date, a penalty of TWD 3,000 is charged.

Conclusion

Businesses using uniform invoices must file VAT returns even if they did not make any sales during the reporting period or if they suspended their business activities. Failing to comply with these rules will inevitably result in penalties, which vary depending on how long the tax return submissions were late. Therefore, taxable persons should pay close attention to these requirements, as well as deadlines for tax return filing, to avoid any unnecessary penalties and compliance issues.

Source: Ministry of Finance

Do businesses in Taiwan need to file VAT returns if they had no sales?
Yes, even if a business had no sales or is applying for suspension, it must still file VAT returns within the required timeframe to avoid penalties.
What is the deadline for filing VAT returns in Taiwan?
VAT returns in Taiwan must be submitted within 15 days after the end of every two-month reporting period, along with the required documentation.
What are the penalties for filing a VAT return up to 30 days late in Taiwan?
If a VAT return is filed within 30 days after the deadline, a late fee of 1% of the tax due is applied every two days, with a minimum penalty of TWD 1,200 and a maximum of TWD 12,000.
What happens if the VAT return is filed more than 30 days late?
When the delay exceeds 30 days, the penalty increases to 30% of the tax due, with a minimum of TWD 3,000 and a maximum of TWD 30,000.
Is there a penalty for late filing if no tax is due in Taiwan?
Yes, if no tax is due but the return is filed late, the penalty is TWD 1,200 if filed within 30 days, and TWD 3,000 if filed after 30 days.
Why is it important for businesses to file VAT returns on time in Taiwan?
Timely filing avoids financial penalties and ensures compliance with Taiwan’s VAT laws, even during business suspension or zero-revenue periods.
Taiwan
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VAT tax researcher, specializing in delivering clear, up-to-date insights on indirect tax regulations and compliance for our website. Rasmus Laan

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