The Thai Revenue Department announced on 9 June 2020 that the Cabinet has approved a draft bill that provides for the collection of VAT on foreign e-service providers and foreign e-platforms as proposed by the Ministry of Finance. Under the draft bill, e-service providers and e-platforms providing e-services, including movie streaming and entertainment services, to customers not registered for VAT in Thailand (generally B2C) would be subject to simplified VAT registration if annual income exceeds THB 1.8 million. Such providers and platforms and would be required to file returns and remit VAT collected.
The approach for the collection of VAT on e-services is based on OECD guidelines.
Source Credit – Orbitax