Thailand foreign digital services VAT proposal
- 28 January 2018 | Richard Asquith
Thailand has updated its proposals to levy VAT on non-resident providers of electronic services to its consumers. The new draft rules will limit any tax liability to VAT, and has removed the potential for corporate income and withholding taxes on foreign providers.
Highlights of the proposals include:
- A VAT registration obligation for non-resident providers of services via a digital platform, website, app, online marketplace or other electronic network if their annual sales exceed Baht 1.8 million
- Marketplaces which act as intermediary for the provider, including invoicing, will be responsible for accounting for any VAT due instead
- Providers must VAT register through the tax authority’s online portal
- There is no obligation to produce a VAT invoice
- For B2B transactions, no VAT is due by the provider who must collect their customer’s Thai VAT number as evidence
- Returns will be submitted online, and may be prepared in English
The latest proposals are now open to public consultation until the end of February 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 improvements,...
Thailand has made digital currencies, such as bitcoin, VAT exempt. This recognises the cryptocurrency as a 'private money' instead of a commodity with its own...
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. The...