Thailand confirm extension for digital services VAT returns

Thailand’s tax authority confirmed that the deadline for VAT payments and returns has been extended for nonresident companies. Thailand’s Revenue Department also confirmed that nonresident digital services providers can take advantage of the general Covid-related VAT deadline extensions.

Which electronic services are subject to VAT?

Thailand introduced digital services VAT to nonresident companies in September 2021. Thai authorities subsequently clarified the scope and nature of digital services covered by VAT. Services such as music and movie streaming, apps and digital advertising are covered under the regulations.

However, not all services provided over the internet are subject to the digital services VAT. For example, live teaching over the internet and payment channels do not meet the specified criteria.

Who must register for VAT in Thailand?

The VAT registration threshold is 1.8 million Baht per year. According to guidance provided by the Revenue Department, nonresident providers of digital services should apply for VAT registration within 30 days from the day that income from electronic services exceeds the 1.8 million Baht threshold.

7% VAT on electronic services

VAT for nonresident digital services providers is set at the standard rate of 7%. Thailand’s cabinet recently approved extending the 7% VAT rate for two more years. Thailand’s VAT rate has been set at 7% since 1997

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