Get the latest guidance on Thailand’s digital services VAT

Thailand introduced digital services VAT to nonresident companies in September 2021. 

Thai authorities have now released: “A Guide on VAT on Electronic Service Provided to Non-VAT Registrants in Thailand by Non-resident Business Person”. As the name suggests, the guide provides detailed information about B2C supplies of digital services to customers in Thailand, by companies resident outside of Thailand. 

You can find the full guide here. Below, we will summarise a few of the key points. For customised advice on how international VAT regulations affect your business, get in touch with a global VAT specialist. 

What is a digital service?

The guidance defines an electronic service as follows: ”service including incorporeal property which is delivered over the Internet or any other electronic network and the nature of which renders their service essentially automated and impossible to ensure in the absence of information technology.”

In other words, digital services VAT applies to non-tangible services (i.e. not sales of goods) that are intrinsically dependent on electronic distribution. 

Some examples of electronic services include: mobile apps, film and music streaming, software programs and digital advertising. 

Note, however, that the list is not comprehensive. Consult a VAT specialist if you are uncertain about whether your operations comprise relevant electronic services. 

Note also that the following are not considered electronic services under Thai regulations: 

• Telecommunication services
• Payment channels 
• Electronic vouchers provides to customers by email or SMS to be redeemed for a meal, a hotel stay, or a theme park entrance
• Live teaching over the internet
• Professional services that are not intrinsically automated, such as consulting via video call

When do you have to register for VAT in Thailand?

The VAT registration threshold is 1.8 million Baht per annum. According to the guidance, nonresident providers of digital services must apply for VAT registration within 30 days from the day that income from electronic services exceeds the 1.8 million Baht threshold. 

In addition, nonresident digital services suppliers that do not meet the threshold can voluntarily register for VAT.