VAT on digital services to customers in Thailand
Thailand has implemented a new law requiring foreign digital service providers to register for VAT in Thailand and charge, collect and remit Thai VAT on supplies of digital services to Thai consumers.
Effective date and threshold
The new registration requirement came into effect from September 1, 2021. There is a registration threshold of 1.8m THB revenue per annum (approx. EUR47K / USD 55K).
Rate and reporting
The Thai VAT rate is 7% and VAT returns are filed monthly with a filing deadline of the 23rd of the following month.
Scope of digital services
The scope of digital services in the Thai legislation and guidance appears to be very similar to other digital service definitions and examples in the EU and other similar global VAT/GST on digital service regimes. In Thailand, this specifically includes:
- Digital products such as mobile applications
- Software programs
- Digital images, videos, and financial data
- Digital music, films, and games
- Distance teaching via pre-recorded medium such as online courses
- Electronic data management such website supply, web-hosting, automated and digital maintenance of programmes
- Providing or supporting a business or personal presence on an electronic network
- Search engine such as customised search-engine services
- Listing services for the right to put goods or services for sale on an online market or auction house
- On-demand streaming services where there is no interaction with the content provider
- Advertising services on intangible media platform
- Support services performed, via electronic means, for arranging and facilitating the completion of transactions.
The Thai legislation specifically excludes telecommunication services, payment channel or money transfer services, electronic vouchers to be redeemed for a meal, hotel stay, or theme park entrance which are delivered to the customer by e-mail or SMS, live teaching services and professional services involving human intervention. In addition, Thailand applies a VAT exemption to e-Books, which includes sales of newspapers, magazines, and textbooks in electronic form.
Contact Avalara to discuss your Thai VAT compliance or VAT/GST on digital services globally.
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