PP36 form – VAT on ‘imported’ services

Making a payment to a foreign entity for the provision of services used/consumed in Thailand is considered import of services and the paying company is required to submit VAT 7% to the Revenue Department by filing the PP36 form.

Although the supplier’s invoice may not contain VAT, the company registered in Thailand shall submit the VAT on their behalf following the payment of the invoice.

You run a recruitment agency registered in Thailand and hire a Hong Kong-registered company to design your new website. You receive an invoice of HKD 1,000 for ‘Website design’ on 15th January and proceed to the payment of this invoice on 10th February from the company’s Thai bank account. Assuming the debited amount is THB 3,800 (1 HKD = 3.8 THB), you will have to pay an additional amount of THB 3,800 * 7% = THB 266 to the Revenue Department by filing the PP36 form within 7th March (+8 extra days when submitted online). This paid VAT shall be deductible from collected VAT (if any) or added to your VAT credit the following month.

This also applies to companies that are not VAT-registered in Thailand and if so, the paid VAT shall be recorded as an expense deductible from the company’s revenues instead.