Thailand e-services VAT

Thailand will extend VAT on digital and electronic services offered by foreign providers based on a bill proceeding through the Parliament as at June 2020.

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.

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