Effective 1 September 2021, foreign businesses rendering electronic services (e-services) to users in Thailand who are not VAT registrants — such as individuals, Representative Offices or Regional Offices — are required to register for VAT if their annual turnover generated from Thailand-based users exceeds ฿1.8 million per fiscal year. Revenue generated from such users is subject to 7% VAT.
What are e-services?
E-services covered by this regulation include, but are not limited to:
- Online games and in-app purchases
- Software and application subscriptions (SaaS)
- Streaming services (music, video, podcasts)
- Online advertising platforms
- Digital content and media downloads
- Online marketplace platforms and intermediary services
Who is affected?
This regulation applies to foreign entities — companies incorporated outside of Thailand — that provide e-services to non-VAT registered users in Thailand. Thai-registered companies were already subject to VAT obligations under existing legislation.
The regulation does not apply where the recipient of the e-service is a VAT-registered business in Thailand, as those businesses are already subject to reverse-charge VAT obligations via the PP.36 form.
VAT Registration Obligation
Foreign e-services providers must register for VAT with the Revenue Department of Thailand once their Thai-sourced turnover exceeds ฿1.8 million in a fiscal year. Once registered, they must collect 7% VAT on all qualifying sales to non-VAT registered users in Thailand and file VAT returns (PP.30) monthly.