Effective September 1, 2021, foreign businesses rendering e-services to users in Thailand who are not VAT registrants (e.g. individuals, Representative/Regional Offices) are required to register to VAT if their turnover in Thailand exceeds THB 1.8 million per fiscal year and such revenue generated from Thailand-based users are subject to 7% VAT. This includes online games, sticker downloads, online ads, digital content and online hotel bookings.
Overseas e-services providers shall file their Sales VAT returns to the Thai Revenue Department on a monthly basis but shall not be permitted to claim Input VAT (for their expenses subject to VAT in Thailand, if any).
This amendment of the Revenue Code also adds the two following definitions for “electronic service” and “electronic platform”:
- “electronic service” is “a service which includes intangible assets delivered through internet systems or other electronic means, in which the nature of the service is automatic, and in which the service cannot be performed without information technology.”
- “electronic platform” is “a market, channel or any other process that multiple service providers use to provide electronic services.”
When online services are rendered via e-platforms, the operator of such platform is responsible for filing Sales VAT returns on behalf of all services providers.
As a result, non-VAT registrants are no longer required to submit VAT on behalf of the foreign e-services providers but VAT registrants shall still submit it via the PP36 form as usual.