The 3 Most Common AWS/GCP Payment Mistakes (And How They Increase Your Cloud Costs)
Many organizations rely on direct credit-card payments without understanding Taiwan’s tax requirements or alternative payment options. As a result, they incur unnecessary costs. Below are the three most frequent mistakes:
❌ Mistake 1: Not Withholding the 20% Tax—Leading to Back-Taxes and Penalties
- Under Article 88 of the Income Tax Act and the Regulations Governing Withholding Rates, Taiwan businesses purchasing cloud services from offshore entities such as AWS and Google must withhold 20% corporate income taxbefore remitting the remaining payment.
- Most businesses pay AWS or GCP directly using credit cards without withholding, which exposes them to:
1. Back-tax assessments
2. Additional penalties from the National Tax Bureau - Example: If your monthly AWS/GCP usage is USD 50,000,
Withholding should be:
50,000 ÷ 0.8 × 20% = USD 12,500
Meaning your actual total cloud cost becomes USD 62,500—a significant increase.
❌ Mistake 2: No Taiwan-Compliant Invoice — Causing Accounting & Tax Filing Issues
- AWS or GCP direct payments cannot generate a Taiwan Uniform Invoice, which means the expense cannot be used for tax deduction or properly recorded in your accounting books. This creates unnecessary complications for finance teams.
- For larger organizations, this tax burden often turns into a hidden operational cost that quietly increases total cloud spending.
❌ Mistake 3: Ignoring Exchange Rate Fluctuations
- Paying AWS/GCP in USD exposes companies to exchange-rate volatility, causing:
1. Unpredictable cloud expenses
2. Budgeting difficulties
3. Higher actual cloud costs over time - Working with a reseller allows businesses to pay in TWD, eliminating FX risk and improving cost control.
👉 How to Avoid These Issues? Use an Authorized AWS/GCP Reseller. Paying through an authorized cloud reseller eliminates the 20% withholding tax entirely.
You also gain:
1. Taiwan-compliant invoices
2. TWD billing
3. Local support
4. Additional cost savings
5. Simplified cloud finance management
Payment Method Comparison: Direct vs. Reseller
When purchasing AWS or GCP services, businesses that pay through an authorized reseller gain multiple advantages, including exemption from cross-border withholding tax, TWD billing, full financial compliance, local technical support, and consolidated billing management.
The comparison below helps companies clearly understand how each payment method affects cost, compliance, and operations—allowing them to make the best decision for their cloud strategy.
Payment Method Comparison Table
| Item | AWS Direct Payment | GCP Direct Payment | Through Reseller |
|---|---|---|---|
| Corporate Entity Location | AWS, Inc. (USA) | Google Asia Pacific Pte. Ltd. (Singapore) | Taiwan |
| Subject to 20% Withholding Tax | ✅ Required | ✅ Required | ❌ Exempt |
| Taiwan Uniform Invoice Available | ❌ Not available | ❌ Not available | ✅ Available |
| Payment Currency | USD | USD | TWD (New Taiwan Dollar) |
| Technical Support & Discounts | ❌ No discounts | ❌ No discounts | ✅ Possible discounts & billing management |
Why Choose Elite Cloud as Your AWS/GCP Reseller?
Elite Cloud is a trusted partner for enterprises adopting AWS/GCP. We provide cloud infrastructure, compute, storage, databases, AI services, analytics, and 24/7 technical support—plus full cost-optimization planning.
Elite Cloud Advantages:
✅ More Competitive Pricing: With large-scale AWS/GCP procurement, we offer better pricing to help companies reduce cloud expenses.
✅ Technical Support & Cost Optimization: Our certified cloud architects help you get the most out of your environment—performance, security, and cost efficiency included.
✅ Smooth Transition, Zero Downtime: No data migration needed; No service changes; Only payment method changes—and you immediately enjoy all benefits.
FAQ
Q1: If I’m already paying AWS/GCP directly, can I switch to reseller billing?
Yes. Elite Cloud can onboard you anytime. There is no service migration, no downtime, and no configuration changes.
Q2: Will reseller billing affect my AWS/GCP permissions?
No. You retain full administrative access to all services.
Q3: Do I need a long-term contract?
No. Elite Cloud offers flexible, no-commitment billing options.
Q4: Are there extra charges for using a reseller?
No additional fees. You only pay for actual cloud usage—and may receive extra discounts.
Q5: What additional support can Elite Cloud provide?
Cloud architecture optimization, monitoring, billing management, cost governance, and ongoing technical support.
