Thailand foreign e-commerce VAT 2020

Thailand is to underake a further attempt to implement Value Added Tax collection obligations on non-resident sellers of goods or services to local consumers. The measure, from the Thai Revenue Department, is to be represented to parliament in September. A public consultation was held last year.

THe Thai VAT rate is currently 7%. VAT on non-resident sellers could raise up to 4billion baht per annum. Key measure in the existing proposal include:

• A VAT registration threshold of 1.8million
• No VAT invoice is required.
• Marketplaces facilitating sales of service may become responsible for the VAT and registration
• An online registration portal is to be provided in English
• The VAT return will be in English, too
• There is no provision to reclaim an input VAT suffered
• B2B supplies may be zero-rated if the customer can provide their local VAT number