Thailand e-services VAT
Thailand has extended VAT on digital and electronic services offered by foreign providers from 1 January 2020 based on a draft bill.
Thai VAT compliance
The law requires non-resident providers of e-services to non-VAT registered persons (i.e. consumers) to VAT register, and file periodic reports with details of VAT charged and collected. The rules apply to digital marketplaces facilitating the sales of such services, and they are regarded as the taxable supplier.
There is a VAT registration threshold of THB1.8 million. Providers may register with the Thai Revenue Department's online portal. Registrations are streamlined, and do not include the facility to reclaim Thai VAT incurred.
Scope of e-services VAT
Income from taxable services includes e-books; online gambling; automated e-learning; streaming or download media; app's; and SaaS supplies. Online hotel booking sites are included, although the VAT is only due on the service fee charged to the consumer, and not on room rates.
Determining if VAT is due
In terms of determining the applicability of taxing a Thai consumer, foreign providers can reply on IP addresses, credit card payment addresses or postal addresses.
There will be no VAT due on sales to Thai businesses. Instead, they may rely on the reverse charge, self-reporting mechanism.
Latest Thai news
July 27, 2018
Overview This release is a maintenance release of the VAT Reporting application for the month of July. It includes changes in reporting documents, SII...
May 18, 2018
Thailand has made digital currencies, such as bitcoin, VAT exempt. This recognises the cryptocurrency as a ‘private money’ instead of a commodity with its...
March 20, 2018
Thailand’s Cabinet has moved to levy 7% VAT on digital currency (e.g. bitcoin) transactions. This is aimed at curbing money laundering and tax evasion....