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Thailand VAT on foreign digital services September 2021

Thailand has become the latest country to impose Value Added Tax on non-resident providers and electronic marketplaces of digital or electronic services from 1 September 2021. This includes a VAT registration threshold of THB 1.8million annum (approx. €46,000), after which sellers should register with the Revenue Department. B2B transactions should use the reverse charge. There is a basic VAT compliance track for non-residents, the Simplified VAT System for E-Service (SVE).

The current VAT rate in Thailand is 7%. VAT Calc’s lists global VAT and GST on digital services to see which other countries have introduced indirect taxes on digital services to consumers.

What digital services are liable to Thai VAT

The following digital or electronic services fall under the non-resident VAT obligations for any fee income:

  • SaaS or cloud software
  • Mobil app’s and similar digital products
  • Video and digital images
  • Streaming media (music and films etc)
  • Automated e-learning
  • Webhosting and search engine services
  • Online marketplace listing and other digital advertising services
  • Digital intermediary, service or sales via electronic marketplaces

Telecoms, e-book and online news services are excluded.

B2B digital services – reverse charge

Non-residents should not charge VAT to business customers. This may be evidenced by a Thai VAT number or tax identification number. However, the foreign business is not required to check the validity of the number. But they should it looks reasobible (e.g. has 13 digits).

Electronic platforms and marketplace VAT liabilities

In addition to sellers of digital services now being liable to Thai VAT, electronic platforms or marketplaces may have to take on the indirect tax obligation. This applies the service providers provide electronic services through a platform with continuous processes if executing all of the following:

  1. offering service,
  2. receiving payment of service, and
  3. delivering service.

Simplified VAT System for E-Service

There is a VAT registration threshold of THB 1.8 million per annum (approx. €46,000) for a corporation’s financial year – or calendar year in the case of non-incorporated individuals. Although it is possible to voluntarily register before reaching this limit. Registration is via the Simplified VAT System for e-Service (SVE) on the Revenue Department’s website.

Once registered, VAT returns should be filed monthly via SVE. Any VAT can be paid by credit card or a direct bank transfer. The return and payment must be made by 23rd of the following month.

Asia Pacific VAT on digital services

Comments (click for details) Rate Date Threshold Comments
Australia 10% Jul 2017 AUD $75,000
Azerbaijan 12% Jan 2017
Armenia 20% Jan 2022 AMD 115million
Bangladesh 5% - 15% Jul 2019 B2B and B2C
Bhutan 7% Jul 2021 Nu 5million
Cambodia 10% Mar 2022 KHR 250m
China 6%-13% N/a Nil Withholding VAT; B2B and B2C
Fiji 9% TBC FJD 300,000
India 18% Jul 2017 -
Indonesia 11% Aug 2020 IDR600m or 12k customers
Japan 10% Oct 2015 JPY 10 million
Kazakhstan 12% Jan 2022 Nil
Kyrgyzstan 12% Jan 2022 Nil
Laos 7% Feb 2022 LAK 400m
Malaysia 6% Jan 2020 RM500,000
New Zealand 15% Oct 2016 NZD 60,000
Pakistan 2% Sep 2021 Nil Marketplace Withholding VAT
Philippines 12% TBC P 3million
Singapore 7% Jan 2020 S$ 100,000
South Korea 10% Jul 2015 Nil
Taiwan 5% May 2017 NTD 480,000
Tajikistan 18% Jan 2021
Thailand 7% Sep 2021 1.8m Baht
Uzbekistan 15% Jan 2020 Nil
Vietnam 10% Dec 2020

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