Taiwan Import Tax: How Duty, VAT and Commodity Tax Stack

Importing into Taiwan means paying more than one tax, and they stack. The number most people get wrong is the business tax base, which includes the duty rather than just the goods price. This guide takes the calculation apart layer by layer, cites the statute behind each figure, and flags the three places estimates usually go wrong.

Last updated:2026-08

Import tax comes in three layers

Taiwan import taxes stack: duty is charged on the customs value, then a 5% business tax is charged on customs value plus duty, and for certain goods a commodity tax is inserted between the two. Each layer lifts the base for the next, so the order of calculation cannot be rearranged.

Most estimates only cover the first layer. The bill that arrives is higher than expected almost always because of the second base — business tax is not 5% of the goods price, it is 5% of customs value plus import duties.

Layer	Item	Base	Rate
1	Customs duty	Customs value (CIF)	By tariff code, 0% to over 500%
2	Commodity tax (certain goods only)	Customs value + duty	Per the Commodity Tax Act
3	Business tax	Customs value + duty + commodity tax	5%

The authority is Article 20 of the Value-added and Non-value-added Business Tax Act (加值型及非加值型營業稅法): business tax on imported goods is computed on the customs value plus import duties, and where commodity tax or tobacco and alcohol tax applies, on that total plus the additional tax.

Customs value is the sum of three numbers

Customs value (完稅價格) = goods price + international freight + insurance. In trade terms this is CIF.

This is where the whole calculation starts and where it is most often understated. Goods priced at NT$3,000 with NT$800 freight and NT$50 insurance have a customs value of NT$3,850, not NT$3,000 — and that NT$850 difference is amplified through every layer above it.

For bulk sea freight the transport share can exceed 20% of the goods value, which makes a goods-price-only estimate badly wrong. See How customs value is calculated.

The tariff rate depends on the tariff code

Taiwan's import tariff schedule has 12,594 lines: the six-digit international Harmonized System code plus five digits set by Taiwan, eleven in total. The same product classified under two different codes can face rates that differ by more than tenfold.

Rates cannot be inferred from a product name. Knitted and woven garments sit in different chapters (61 and 62), and cotton, polyester and wool each map to different lines. See The complete HS Code guide and the Taiwan import tariff tables.

Commodity tax: an extra charge on seven categories

Under the Commodity Tax Act (貨物稅條例), seven categories carry commodity tax whether domestically produced or imported:

Category	Basis and rate
Rubber tyres (橡膠輪胎)	10% ad valorem for bus and truck tyres
Cement (水泥)	Specific. Portland blast-furnace cement NT$280 per tonne; substitute and other cement NT$440 per tonne
Beverages (飲料品)	Ad valorem. Unsweetened drinks and qualifying pure fruit and vegetable juices are exempt
Flat glass (平板玻璃)	Ad valorem
Oil and gas (油氣類)	Specific
Electrical appliances (電器類)	Ad valorem
Vehicles (車輛類)	Passenger cars 12%; trucks, buses and other vehicles 15%; motorcycles 17%

Personal shoppers most often get caught by appliances and beverages. Importing an air conditioner or a case of sweetened drinks adds a commodity tax on top of duty and business tax, and that commodity tax then enters the business tax base.

The de minimis threshold and its two limits

Under Customs Act (關稅法) Article 49 paragraph 2, a consignment whose combined customs value falls at or below the ceiling announced by the Ministry of Finance — currently NT$2,000 — is exempt from duty and from the business tax and commodity tax that Customs collects on its behalf.

Two limits make it less useful than it sounds.

Not every product qualifies. Tobacco, alcohol and agricultural products under tariff quota are excluded regardless of value.

There is a frequency cap. A taxpayer clearing goods under this exemption more than six times in a half-year is classified as importing frequently and loses it. Half-years run January to June and July to December, counted by the import date on the declaration and reset on 1 January and 1 July.

One more common misreading: this is a threshold, not a deduction. A consignment valued at NT$2,001 is assessed on the full NT$2,001.

A worked example

Goods from Japan priced at NT$8,000, freight NT$1,200, insurance NT$100, assumed tariff rate 5%:

Step	Calculation	Amount
Customs value	8,000 + 1,200 + 100	9,300
Duty	9,300 × 5%	465
Business tax	(9,300 + 465) × 5%	488
Total	465 + 488	953

Using the goods price alone gives NT$820, understating by NT$133. The gap comes from two places: freight and insurance were left out, and the business tax base omitted the duty.

Run your own figures through the Taiwan import duty calculator, which itemises customs value, duty and business tax.

Who is the taxpayer

Under Customs Act Article 6, the taxpayer for imported goods is the consignee, the holder of the bill of lading, or the holder of the goods.

In practice this settles two questions: whose exemption count is used, and who answers if something is wrong with the shipment. Declaring under someone else's name to sidestep the frequency cap spends their allowance and may itself constitute a violation.

Costs beyond tax

Tax is only part of the landed cost. These are not taxes but still have to be paid:

Item	Note
Customs brokerage	Varies by declaration type and broker
Storage	While goods wait at Customs or in a warehouse
Domestic delivery	From the port to your door
Duty advance fee	Charged by couriers who pay the tax up front
Inspection costs	Unpacking and delay if selected for examination

Inspection is the hardest line to forecast because the clearance channel is assigned by system.

Further reading

To run numbers, use the Taiwan import duty calculator. For rate ranges by product category, see the Taiwan import tariff tables. For buying from overseas as an individual, see Shopping overseas and importing to Taiwan.

Primary sources: Customs Act (關稅法), Commodity Tax Act (貨物稅條例), Business Tax Act (加值型及非加值型營業稅法).

Frequently asked questions

How is Taiwan import duty calculated?

Duty equals customs value multiplied by the tariff rate. Customs value (完稅價格) is the goods price plus international freight plus insurance, not the retail price alone. The rate depends on the tariff code, and Taiwan's schedule contains 12,594 lines with rates ranging from 0% to over 500%.

What taxes apply besides duty?

A 5% business tax always applies, and its base is customs value plus duty rather than the goods price alone. Goods listed in the Commodity Tax Act (橡膠輪胎, 水泥, 飲料品, 平板玻璃, 油氣類, 電器類, 車輛類) also carry commodity tax, which is itself added to the business tax base.

What is the duty-free threshold?

Under Customs Act Article 49 paragraph 2, a consignment with a customs value at or below the ceiling announced by the Ministry of Finance, currently NT$2,000, is exempt from duty and from the business tax and commodity tax collected by Customs. Tobacco, alcohol and tariff-quota agricultural products are excluded.

Is the NT$2,000 threshold an allowance I can deduct?

No. It is a threshold, not a deduction. A consignment valued at NT$2,001 is taxed on the full NT$2,001, not on the NT$1 above the line. Consolidated shipments are especially exposed because the values of separate items are combined.

Is there a limit on how often I can use the exemption?

Yes. A taxpayer who clears goods under the low-value exemption more than six times in a half-year is treated as importing frequently and loses the exemption. The half-years run January to June and July to December, resetting on 1 January and 1 July.