On 1 May 2015, Royal Decree (No 585) was gazetted putting into effect the Govt's resolution to exempt from VAT, sales of newspapers, magazines and textbooks in electronic (eBook) form.

This Insight updates you about the issuance of Royal Decree (No 585).

The Thailand VAT Law

When the VAT law was introduced in Thailand on 1 Jan 1992, the Revenue Code's Section 81(1)(f) prescribed sales of newspapers, magazines and textbooks as being exempt from VAT.

But notwithstanding the prescription the Thailand Revenue Department officers have maintained that Section 81(1)(f) exempts newspapers, magazines and text- books from VAT, only when sold in the paper form.

When sold in another form, they said, the seller is providing a service, which is subject to VAT.

Royal Decree (No 585) rectifies this, as follows:

The Royal Decree (No 585) BE 2558

Applicability

From and including 02 May 2015.

Exemption from VAT

The following shall be exempt from VAT:

• Sales of newspapers, magazines and textbooks in electronic format on the internet.

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