Value-added or non-value-added business tax shall be levied, in accordance with this Act, on the sale of goods or services within the territory of the Republic of China (R.O.C.) and on the import of goods.

"Value-added business tax" as used in this Act means the tax calculated under Chapter 4, Section 1 herein; "non-value-added business tax" means the tax calculated under Chapter 4, Section 2 herein.

Taxpayers of the business tax are as follows:
1. Business entities that sell goods or services.
2. Consignees or holders of imported goods.
3. Purchasers of services provided by foreign enterprises, institutions, groups, or organizations that have no fixed place of business within the territory of the R.O.C.; however, in the case of foreign international transport enterprises that have no fixed place of business within the territory of the R.O.C but have agents in the ROC, the taxpayers are the agents.
4. If the agricultural or fishery fuel oil referred to in Article 8, paragraph 1, subparagraph 27 or 28 herein loses tax-exempt status due to a transfer or to a change in the purpose of use, the taxpayer is the transferring party or the party that changes the purpose of use; however, in the event that the transferring party or the party that changes the purpose of use is unknown, the taxpayer is the holder of the goods.

A foreign enterprise, institution, group, or organization having no fixed place of business within the territory of the R.O.C. selling electronic services over the internet or other digital network to an individual in the territory of the R.O.C. shall be the taxpayer of the business tax and may not apply for the provision of Subparagraph 3 of the preceding Article of this Act.

The definition of sale of goods is the transfer of ownership of goods to others for a consideration.
The definition of sale of services is the supply of services to others or the provision of goods for the use of others for a consideration with the exception of professional services offered by practitioners and services rendered by individuals in employment.
Any one of the following circumstances shall be deemed as a sale of goods:
1. Goods produced, imported or purchased by a business entity for sale but in fact used by itself or transferred to others for no consideration.
2. Goods used to redeem debt or distributed to shareholders or investors; and stock left over when a business entity is dissolved or nullified.
3. Where a business entity purchases goods under its own name on behalf of a third party and delivers the goods to the third party.
4. Where a business entity consigns goods to others for sale.
5. Where a business entity sells the consigned goods.
The preceding paragraph shall also be applicable to sale of services.

The transfer or disposition of trust property between trust parties as follows shall not be deemed as a sale of goods regulated in the preceding article:
1. Between settler and trustee, due to the establishment of the trust.
2. Between the former trustee and new trustee, due to a new appointment of trustee during the term of the trust relationship.
3. Between settler and trustee, due to the unsuccessful creation, nullification, revocation, or cancellation of a trust act, or the termination of trust relations.

When any of the circumstances provided in Article 3, paragraph 3, subparagraph 1 or 2 herein apply to a non-profit-seeking enterprise, institution, group, or organization, or to a business entity that engages solely in the business of tax-exempt goods or services, if it is discovered that the input tax has not been reported and deducted from the output tax, the provision of that article and paragraph regarding the circumstances being deemed a sale of goods shall not apply.

Any of the following circumstances is a sale of goods within the territory of the R.O.C.:
1. Where goods sold are required to be transported in order to effectuate delivery and the origin of shipment is within the territory of the R.O.C..
2. Where goods sold are not required to be transported in order to effectuate delivery, and the goods are located within the territory of the R.O.C..
Any of the following circumstances is a sale of services within the territory of the R.O.C.:
1. Where services sold are supplied or utilized within the territory of the R.O.C..
2. Where passengers are boarded or goods loaded within the territory of the R.O.C by an international transportation enterprise.
3. Where a foreign insurance enterprise accepts reinsurance policies from an insurance enterprise within the territory of the R.O.C..

Any of the following circumstances is an import of goods:
1. The transport of goods into the R.O.C., with the exception of the transport of bonded goods into a bonded zone.
2. The transport of bonded goods from a bonded zone into any other area of the R.O.C..

Any of the following is a business entity:
1. A profit-seeking enterprise owned by the private sector, government, or jointly owned by both.
2. A nonprofit-seeking enterprise, institution, organization, or association which sells goods or services.
3. A foreign enterprise, institution, group, or organization which has a fixed place of business within the territory of the R.O.C.
4. A foreign enterprise, institution, group, or organization having no fixed place of business within the territory of the R.O.C., but which sells electronic services over the internet or other digital network to an individual in the territory of the R.O.C.

"Bonded zone" as used in this Act means an export processing zone, a science-based industrial park, an agricultural technology park, or a free trade zone, approved by the government, or a bonded factory, bonded warehouse, or logistics center administered by Customs, or any other specially designated area approved for establishment by the competent authority in charge of the relevant industry and supervised by Customs.
"Bonded zone business entity" as used in this Act means an enterprise inside an export processing zone, a science-based industrial park, an agricultural technology park, or a free trade zone, such zone or park being approved by the government, and also means a bonded factory, bonded warehouse, or logistics center administered by Customs, or an enterprise inside any other specially designated area approved for establishment by the competent authority in charge of the relevant industry and supervised by Customs.
"Taxable zone business entity" as used in this Act means a business entity other than a bonded zone business entity.