February 15, 2021
Thailand enacts new VAT rules for foreign e-business and digital services
Measures for the taxation of foreign e-business in Thailand were first proposed in 2017, and new value-added tax (VAT) rules have now been enacted and were published in the Royal Gazette on 10 February 2021. The new rules are effective from 1 September 2021. Their main objective is to enable the collection of VAT on electronic services rendered by e-business operators in foreign countries to non-VAT operators in Thailand. The regulations applicable to Thai e-business operators remain unchanged.
The key principles of the new VAT rules are:
Based on past public consultations, the purpose of the new VAT rules is to collect VAT on electronic/digital services provided by foreign operators, such as movie and music streaming services, digital content providers and online games.
Further details of related procedures and compliance requirements should be announced in supplementary laws, including additional guidelines that the Thai Revenue Department is expected to issue in the next several months.
For additional information with respect to this Alert, please contact the following:
EY Corporate Services Limited, Bangkok
Ernst & Young LLP (United States), Thai Tax Desk, New York