Thailand: Non-resident electronic service providers with an income above 1.8 million THB subjected to VAT from 1 September 2021
Earlier this year, Thailand enacted a legislation to introduce an obligation on non-resident electronic services providers to register for, charge, and remit VAT. The implementation date of the new regime is 1 September 2021.
The new legislation mainly stipulates that business-to-consumer supplies of e-services will be subjected to VAT from 1 September 2021 if the supplier’s annual turnover is above 1.8 million THB (47,000 EUR or 55,500 USD). Such a supplier shall register for VAT, file VAT returns, and pay VAT by calculating output tax without deducting input tax starting from 1 September 2021. The electronic service providers and electronic platforms are not required to issue a tax invoice or keep an input tax report.
An English-language guide “A Guide on VAT on Electronic Service Provided to Non-VAT Registrants in Thailand by Non-resident Business Person” was published on the website of Thailand’s Revenue Department. It covers the new regime that will be introduced from September, including registration, filing, and payment obligations, the rules regarding value-added tax refunds, and answers frequently asked questions.