Thailand foreign digital services VAT proposal

Sun 28th Jan 2018

Thailand has updated its proposals to levy VAT on non-resident providers of electronic services to its consumers. The new draft rules will limit any tax liability to VAT, and has removed the potential for corporate income and withholding taxes on foreign providers.

Highlights of the proposals include:

  • A VAT registration obligation for non-resident providers of services via a digital platform, website, app, online marketplace or other electronic network if their annual sales exceed Baht 1.8 million
  • Marketplaces which act as intermediary for the provider, including invoicing, will be responsible for accounting for any VAT due instead
  • Providers must VAT register through the tax authority’s online portal
  • There is no obligation to produce a VAT invoice
  • For B2B transactions, no VAT is due by the provider who must collect their customer’s Thai VAT number as evidence
  • Returns will be submitted online, and may be prepared in English

The latest proposals are now open to public consultation until the end of February 2018.



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