Thailand Explains New VAT Rules For B2C Electronic Services

by Mary Swire, Tax-News.com, Hong Kong

06 August 2021

Thailand's Revenue Department has released new English-language guidance on the value-added tax rules for business-to-consumer supplies of electronic services rendered by non-resident businesses.

Earlier this year, Thailand enacted legislation to introduce an obligation on non-resident electronic services providers to register for, charge, and remit VAT starting from September 2021.

The bill provides that business-to-consumer supplies of services will be subject to VAT from September 1, 2021, if the supplier's annual turnover is THB1.8m (USD60,000) or more. E-services are those that cannot be provided other than through information technology.

Where the service is provided through an electronic marketplace that has its own customer billing service, VAT should be administered by the marketplace operator, rather than the seller.

The new guide, titled "A Guide on VAT on Electronic Service Provided to Non-VAT Registrants in Thailand by Non-resident Business Person", 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.

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