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Taiwan's Investment Commission said earlier this month it may
order Uber to exit the market, saying the company misrepresented
its business as an internet-based technology platform rather
than a transportation service. A decision is due by the end of
August.
Uber has not previously been liable for sales tax since it set
up shop in Taiwan in 2013. But the government is overhauling the
tax regime it imposes on global online service providers, and
says Uber owes back taxes.
"As long as they provide services in Taiwan, they have to pay
sales taxes," said Wu Ting-yang, auditor of the National
Taxation Bureau of Taipei.
Wu declined to disclose how much Uber might be billed for sales
tax, but local media reports estimated the tax would be up to
T$200 million ($6.4 million).
The company rejected the claim it owes sales taxes.
"Uber is meeting all of its tax obligations under relevant local
laws," the firm said in an emailed response to Reuters'
questions.
The firm said it had taken part in discussions hosted by the
National Taxation Bureau on Thursday "to discuss potential tax
reform for cross-border digital services".
(Reporting by Faith Hung; Editing by Kenneth Maxwell)
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