E-commerce businesses often have the need to import goods from overseas. When doing so, what kinds of taxes are applicable and which types are included? How is business tax on imported goods calculated? How do the two types of customs clearance methods affect import taxes?
When Do E-Commerce Imports from Overseas Require Tax Payment?
If an e-commerce business imports goods from overseas valued under NT$2,000, no customs duty, commodity tax, or business tax is levied. However, this tax exemption is limited to no more than six times within a half-year period. If the number of imports exceeds six times within that half-year, even goods under NT$2,000 become taxable. This regulation excludes tobacco, alcohol, and certain agricultural products. The “half-year” is divided into the first and second halves of the calendar year.
As for corporate income tax, it still depends on the company’s annual revenue and expenses.
What Taxes Apply to Imported Goods?
2.1 Customs Duties:
There are three types of duty calculation:
• Based on quantity: tax rate × quantity
• Based on value: tax rate × declared value
• Composite duty: tax is applied on the higher amount between the two above
2.2 Commodity Tax or Tobacco/Alcohol Tax:
Commodity tax is usually calculated as:
Taxable unit price × applicable tax rate × monthly taxable quantity (typically 10–20%).
For tobacco and alcohol, a specific Tobacco and Alcohol Tax is levied, calculated by a fixed amount per liter or per kilogram.
2.3 Business Tax (VAT):
Once goods exceed the minimum taxable threshold, they are subject to a 5% business tax. (Detailed calculation below.)
2.4 Trade Promotion Service Fee:
This fee is calculated as 0.04% of the customs-cleared value of goods. If the calculated amount is under NT$100, it is exempt.
How Is Business Tax Calculated for Imported Goods?
Business tax is collected by the Customs Authority on behalf of the tax agency. The formula is:
Business Tax = (Customs Value + Commodity Tax / Tobacco & Alcohol Tax + Health Welfare Surcharge on Tobacco) × 5% VAT rate
What Is the Tax Difference Between Simplified and General Customs Clearance?
If the value of imported goods does not exceed NT$50,000, simplified customs clearance can be used, with the courier service paying the business tax on behalf of the buyer.
For goods valued over NT$50,000, general customs clearance is required, which involves submitting all relevant documents and following a more complex process.
For tax deduction purposes under simplified clearance, you must obtain a “Customs Payment Certificate for Courier Import Goods” and an invoice from the import company.
Under general clearance, the tax payment certificate already includes the necessary documents for accounting and tax purposes.
⸻
Understanding these tax obligations and customs procedures is essential for e-commerce businesses that regularly import goods. Knowing the rules helps streamline customs clearance and tax reporting processes efficiently.