On 10 February 2021, Thailand Revenue Code Amendment Act (No. 53) BE 2564 was gazetted, enacting Thailand VAT laws for foreign digital services (electronic services or eServices) provided to non VAT registered recipients in Thailand.

These VAT laws are enacted into the Thailand tax code for fair and comparable VAT treatment for Thailand digital services and foreign digital services that are provided to recipients in Thailand who are not registered for VAT.

This Insight updates you about the enacted laws.

Revenue Code Amendment Act (No 53) BE 2564

Applicability

From and including 01 September 2021.

Electronic Dealings with the Revenue Department

The preliminary Section 3.16 of the tax law has been amended, enabling:

• Return forms, payments, reports, documents and records required to be submitted to the Thailand Revenue Department, and notices and letters required to be sent by the Thailand Revenue Department to be done via electronic processes.
  

Definitions

The definition for Goods in Section 77/1 (9) of the VAT law has been amended as follows:

• "Goods" means corporeal or incorporeal property that is appropriated for sale or use or other purposes including property that is imported, but not including incorporeal property that is provided through the internet or by other electronic means.
  

A definition for Electronic Services has been added as Section 77/1 (10/1) of the VAT law as follows:

• "Electronic Services" means the provision of incorporeal property via the internet or by other electronic means, that is essentially automated, and that cannot be provided without the use of information technology.
  

And a definition for Electronic Platforms has been added as Section 77/1 (10/2) of the VAT law as follows:

• "Electronic Platforms" are electronic marketplaces, channels, processes or methods that service providers use to provide Electronic Services.
  

Liability to VAT

Two provisions have been added to Section 82/13 of the VAT law, prescribing:

• Suppliers who provide Electronic Services from abroad and consumed in Thailand by recipients who are non VAT registrants are liable for Thai VAT on the selling prices without deduction for Input VAT, and remittance of such VAT to the Thailand Revenue Department.
  

• But when such suppliers provide Electronic Services through Electronic Platforms, the operators of the Electronic Platforms are instead liable for the VAT and remittance of the VAT to the Thailand Revenue Department.

Registration for VAT

The provision in Section 86/1 of the VAT law has been amended, making it clear:

• Suppliers who provide Electronic Services from abroad and consumed in Thailand by recipients who are non VAT registrants, shall register for VAT.
  

Tax Invoices

And a provision has been added as Section 86/1(1/1) of the VAT law, prescribing:

• Suppliers who provide Electronic Services from abroad and consumed in Thailand by recipients who are non VAT registrants cannot issue any Thai Tax Invoices.
  

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