VATLive > Blog > VAT > Thailand foreign digital services VAT proposal - Avalara

Thailand foreign digital services VAT proposal

  • VAT
  • 27 January 2018 | Richard Asquith

Thailand foreign digital services VAT proposal

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.

Latest Thai news
VAT Reporting v18.7.1
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 improvements,...
Thailand bitcoin VAT exempt
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 own...
Thailand levies VAT on bitcoin
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. The...

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.