Artificial IntelligenceCryptocurrencyMetaverseCybersecurityTech Forward

Taiwan Wants Uber to Front the Bill in a Sales Tax Stand-Off

August 19, 2016, 8:15 AM UTC
A user checks the Uber APP from a cellphone in Taipei on august 14, 2015. Taiwan has fined Uber a total of 1 million USD since September for improper registration, turning up the pressure on the app-based taxi service as authorities mull revoking its license to operate on the island. AFP PHOTO / Sam Yeh (Photo credit should read SAM YEH/AFP/Getty Images)
Photograph by Sam Yeh—AFP/ Getty Images

Taiwan has asked Uber Technologies (UBER) to pay a sales tax bill estimated by local media to be up to about $6.4 million, the government said on Friday, as a decision looms on whether the global ride-hailing service may be ordered to leave the island.

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.

See also: Here’s Why Uber Is So Aggressive and In a Hurry

“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.

See also: Judge Rejects Settlement in Uber Driver Expenses Case

For more on Uber, watch Fortune’s video:

“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”.