E-Service Tax in Thailand for Non-resident Business shall be in effect on September 1, 2021. A foreign service operator or electronic platform of electronic services will be subject to Thailand’s VAT on electronic services if 2 criteria are met:
- Electronic services provided to non-VAT registered customers in Thailand
- Income from such services of more than 1.8 million baht per year.
Please note that the tax rate is 7%.
Accordingly, the taxation of e-Service will affect foreign business platforms and giant tech companies like Google, Facebook and many more. Therefore, the Revenue Department in Thailand issues “A Guide on VAT on Electronic Service Provided to Non-VAT Registrants in Thailand by Non-resident Business Person” (as of July 2021).
This guide provides detailed information about VAT on electronic service provided to non-VAT registrants in Thailand by non-resident business person under the Revenue Code with effect from September 1, 2021. This 22-page guide covers the following topics:
- Scope of VAT on Electronic Service
- Key Elements
- VAT Registration
- VAT Filing and Payment
- Output Tax Report
- VAT Refund
- Compliance and Enforcement
- Frequently Asked Questions (FAQs)
- Further Information
The Scope of e-Service Tax
The Revenue Code Amendment Act (No.53) B.E. 2564 (2021) mainly stipulates that non-resident electronic service providers and electronic platforms who receive income of more than 1.8 million baht per year from providing electronic services to non-VAT registered customers in Thailand shall do 3 tasks
- register for VAT
- file VAT returns, and
- pay VAT by calculating output tax without deducting input tax starting from September 1, 2021, which is the implementation date of the regime
The electronic service providers and electronic platforms are not required to issue a tax invoice or keep an input tax report.
Examples of electronic service subject to the e-Service Tax in Thailand
- Digital products such as mobile applications;
- Software programs;
- Digital images, videos, and financial data;
- Digital music, films, and games;
- Distance teaching via pre-recorded medium such as online courses;
- Electronic data management such website supply, web-hosting, automated and digital maintenance of programs;
- Providing or supporting a business or personal presence on an electronic network;
- Search engine such as customized search-engine services;
- Listing services for the right to put goods or services for sale on an online market or auction house;
- On-demand streaming services where there is no interaction with the content provider;
- Advertising services on intangible media platform;
- Support services performed, via electronic means, for arranging and facilitating the completion of transactions, which may not be digital in nature such as commission fees to intermediaries, service fees to consumers and merchants for sale of products through the electronic marketplace
VAT Registration Website for Non-resident Business
- The Revenue Department’s VAT for Electronic Service (VES) system >> https://eservice.rd.go.th/rd-ves-web/landing (Please find the Instructions here)
After submission, please note that your foreign business will immediately receive a tax identification number which will serve as your Thai tax identification number and your username for the VES system.
If you have further questions regarding the Revenue Code Amendment Act (No.53) B.E 2564, please contact the Revenue Department at www.rd.go.th or Tel. 1161.