Taiwan’s Ministry of Finance introduced a procedure allowing electric vehicle manufacturers and importers to release or import vehicles without paying commodity tax upfront from 1 January 2027. The change aimed to reduce businesses’ financial burdens and tax authorities’ administrative workload.
Taiwan’s Ministry of Finance (MoF) amended Articles 54-1, 54-2 and 59-1 of the Regulations Governing the Collection of Commodity Tax on 18 August 2026. According to the Southern Region National Taxation Bureau, Ministry of Finance, the amendments allow manufacturers and importers to apply for approval to release or import electric vehicles tax-free under an undertaking, with the case closure procedure completed after vehicle registration and licensing.
Under the existing system, manufacturers and importers must pay commodity tax at half the prescribed rate when electric vehicles leave the factory or are imported. They can subsequently apply for a refund after consumers purchase the vehicles and complete registration and licensing. The revised procedure is intended to reduce the costs associated with funds being tied up while businesses await refunds.
Registration and case closure requirements
Businesses approved to use the new procedure must complete vehicle registration and licensing within one year from the first day of the month following the month in which the vehicles leave the factory or are cleared for import. They must then complete the case closure procedure with the competent tax collection authority or the customs office at the place of importation.
Businesses unable to meet the deadline must apply for an extension or pay the commodity tax in advance. Failure to comply may result in the tax being assessed and the withdrawal of eligibility to use the procedure. The amendments will take effect on 1 January 2027.
This announcement was made on 14 October 2026.
