On 2 October 2002, Thailand's Revenue Department issued Instruction No Paw 116/2545 adding three more import services transactions for which recipients in Thailand are liable for VAT under the reverse-charge rule.

This Insight has been updated for the Revenue Department's Instruction.

The Thailand VAT Law

Under Section 77/2 of the VAT law the following import services transactions are subject to VAT:

• Services provided in a foreign country and used (consumed) in Thailand.

And for such import services, Section 83/6 of the VAT law prescribes the reverse-charge rule applies that imposes the VAT liability for the import services onto the recipient of the services in Thailand.

The Revenue Department's Instructions

The Revenue Department's Instruction No Paw 104/2544, issued on 07 Feb 2001, provides a listing of import services for which the recipient in Thailand is liable for VAT under the reverse-charge rule. The listing, as amended by Instruction No Paw 116/2545, is as follows:

1. When a company in a foreign country provides consulting and/or advisory services to a company in Thailand; 
2. When a company in a foreign country provides rental of machine services for a company in Thailand; 
3. When a company in a foreign country designs a structure for a company in Thailand; 
4. When a company in a foreign country provides repair of machine services for a company in Thailand; 
5. When a company in a foreign country provides golf course design services for a company in Thailand; 
6. When a company in a foreign country provides a production technique to a company in Thailand; 
7. When a company in a foreign country provides a computer program to a company in Thailand, and also when providing installation, maintenance, training, consulting etc services to a company in Thailand; 
8. When a company in a foreign country provides brochures and pamphlets for a company in Thailand, which brochures and pamphlets are used for both customers in Thailand and for customers in foreign countries; 
9. When a company in a foreign country provides space on a server in a foreign country for a company in Thailand*; 
10. When a company in a foreign country provides www.internet services for a company in Thailand*; and 
11. When a company in a foreign country provides management services for a company in Thailand*.

* As added by Departmental Instruction No Paw 116/2545 issued on 02 Oct 2002

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