Tax Filing and Compliance Guide

This article provides general tax information for reference only. Tax laws are complex and constantly evolving. Kanorio does not provide tax advice and is not responsible for your tax filings. Please consult a qualified local accountant or tax advisor based on your specific circumstances.

When selling courses, digital products, or other items on Kanorio, there are two distinct tax considerations:

1. Taxes related to your use of Kanorio - You are purchasing website building and e-commerce services from Kanorio (an offshore service provider) and paying a recurring service fee. Depending on the tax laws in your location, you may have reporting obligations.
2. Taxes related to your sales to your customers - You are selling products or courses to buyers on Kanorio. This is your own sales activity, and you are solely responsible for the associated tax liabilities.

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Taiwan - Tax Treatment for Purchasing Kanorio Services

Kanorio is an offshore company with no fixed place of business in Taiwan. When you, as a Taiwanese company or individual, pay monthly or annual fees to Kanorio, it is considered "purchasing electronic services from overseas." According to Taiwan's "Value Added and Non-Value Added Business Tax Act," the treatment is as follows:

You are a Taiwanese Business Operator (with a Unified Business Number)

Under Article 36 of the Business Tax Act, when purchasing electronic services from overseas, you (the buyer) are responsible for declaring and paying business tax at a rate of 5%. The reporting method varies depending on your business type:

• General Tax Calculation Business Operator: If the service fee is exclusively used for operating taxable goods or services, it is exempt from payment. If you also engage in tax-exempt businesses, you will calculate the proportion and fill it into Form 403 for consolidated reporting.
• Assessed Tax Calculation Business Operator: Within 15 days after the start of the period following the payment of remuneration, print the "Business Tax Payment Form for Purchasing Foreign Services (Form 408)" from the Ministry of Finance's Tax Administration website and pay it yourself.
• Government Agencies and Organizations: Similar to assessed tax calculation business operators, within 15 days after the start of the period following the payment of remuneration, fill out Form 408 to make the payment.

Kanorio currently does not provide Taiwanese official invoices. You can use the English invoices issued by Kanorio and your payment records (credit card statements or bank records) as proof of expenses and handle the reporting and payment yourself according to the above regulations.

You are a Taiwanese Individual (without business registration)

According to current Taiwanese regulations, if an offshore e-commerce provider sells electronic services to domestic individuals and the annual sales exceed NT$600,000, the offshore provider must register for tax and pay taxes in Taiwan. Please refer to the Terms of Service for Kanorio's tax status. Individual buyers are not required to self-report.

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Taiwan - Tax Treatment for Selling Products on Kanorio

When you sell courses, digital products, or physical goods through Kanorio, this is considered your sales activity as a seller, and the related taxes are your sole responsibility.

Do You Need to Register for Business Tax?

If you meet any of the following conditions, you should register for business tax with the National Taxation Bureau:

• You have a physical fixed place of business in Taiwan (e.g., a studio).
• You have a business license in Taiwan.
• You employ staff to handle business operations in Taiwan.
• Your monthly online sales of services (e.g., courses, consulting) reach NT$50,000 or more.
• Your monthly online sales of goods (e.g., physical products) reach NT$100,000 or more.

Individual sellers who have not yet reached the threshold do not need to register for business tax at this time, but their income must still be included in their individual income tax declaration.

Buyer's Location Affects Applicable Tax Rate

For business operators who have registered, the applicable tax rate is determined by the buyer's location:

If you have both Taiwanese and overseas buyers, you need to declare them separately based on their proportion. You can check buyer location information in your Kanorio backend.

Invoice Issuance

• Buyer is a Taiwanese company or business (B2B): Issue a three-part official invoice.
• Buyer is a general consumer (B2C): Issue a two-part official invoice or an electronic invoice.
• Buyer is an overseas individual: Official invoices may be waived, and the transaction is zero-rated.

Regarding Stripe and Payment Processing

Kanorio uses Stripe Connect for payment processing. Your sales proceeds, after deducting platform service fees, will be deposited into your Stripe account. Neither Stripe nor Kanorio will file or pay Taiwanese business tax on your behalf. The actual flow of funds does not affect your tax filing obligations. You are still required to file taxes according to the law based on your sales amount and the buyer's location.

Special Note for Online Creators

If you sell courses, digital products, or offer subscription services on Kanorio, please be aware of the "Regulations for the Taxation of Business Tax on Income Earned by Individuals Regularly Publishing Creative Works or Sharing Information Online" issued by the Ministry of Finance, effective September 10, 2025.

These regulations explicitly include income from profit-sharing, subscriptions, and donations obtained through platforms by online creators within the scope of business tax. June 30, 2026, is a grace period. During this period, failure to comply will result in exemption from penalties but will still require back filing and payment. From July 1, 2026, violations will be subject to legal penalties.

Income Tax

Individuals who have not registered for business tax must declare their sales income as part of their annual income tax filing in May. Income should be classified by nature (e.g., income from performing services, other income) and taxed at the applicable rate. It is recommended to consult an accountant for specific classification methods.

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Other Regions at a Glance

United States

Sales tax in the U.S. is governed by individual states, with varying rates and reporting rules. If your sales volume or transaction count in a particular state exceeds the "economic nexus" threshold (standards vary by state, commonly USD 100,000 in annual sales or 200 transactions), you will need to register and collect sales tax in that state. You can enable automatic tax calculation through Stripe Tax, but the ultimate responsibility for filing remains yours.

European Union (EU)

The EU has unified VAT regulations for cross-border digital services. If you sell digital goods or courses to EU consumers from Taiwan, you may need to register and pay VAT in the EU through the OSS (One Stop Shop) mechanism. Rates vary from 17% to 27% across different countries.

United Kingdom

After Brexit, the UK manages its own VAT system, with a standard rate of 20%. For overseas sellers selling digital services to UK consumers, if annual sales exceed £85,000 (or no threshold, depending on the circumstances), VAT registration in the UK is required.

Australia

Australia's GST (Goods and Services Tax) rate is 10%. Overseas digital service providers with annual sales exceeding AUD 75,000 must register for GST and file with the Australian Taxation Office (ATO).

Other Regions

Taxation regulations for cross-border digital goods and services are continuously evolving in various countries. It is advisable to regularly monitor the latest tax laws in your primary sales markets or consult with local tax professionals.

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What Kanorio Can Assist With

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Recommendations

Tax regulations are complex and vary by individual. If you are unsure about your filing obligations, we recommend:

1. Consulting a licensed accountant or tax advisor in your jurisdiction.
2. Referring to the latest announcements on the Taiwan Ministry of Finance's Tax Administration website (www.etax.nat.gov.tw).
3. If using Stripe, refer to the Stripe Tax documentation to understand the scope of automatic tax calculation features.

This article was last updated in April 2026. Tax laws may change at any time; please refer to the latest official announcements from the relevant authorities.

Related Links

• Getting Started with E-commerce
• Fees and Exchange Rates
• Subscriptions and Payments