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11.2. VAT on the Supply of Services by Non-Residents

The supply of services in Thailand by a non-resident is subject to VAT.

When a non-resident has a fixed establishment in Thailand, the establishment is required to register and account for VAT when the registration threshold is met.

When a non-resident has no establishment in Thailand, registration is generally not required and the supply is subject to reverse charge whereby the recipient of the service in Thailand is required to self-assess the VAT due and make payment. If the recipient is registered for VAT in Thailand, they may recover the VAT by crediting it against output VAT.

A non-resident with no establishment in Thailand may register for VAT if it will do business in Thailand for at least 1 year, or at least 3 months if engaged in a government project funded by a foreign loan or foreign aid. In either case, the non-resident may register directly or through an agent.

Supply of Digital Services

Effective 1 September 2021, non-residents without a permanent establishment in Thailand providing electronic-services to resident customers not registered for VAT in Thailand (B2C) are required to register and pay VAT at the standard rate if the registration threshold is met. In case of supply of electronic services to VAT registered customers (B2B), the VAT is payable by the recipient customer on a reverse charge basis.

Where the services are supplied through an electronic-platform with a continuous process for the provision of services including payment and delivery, then such platform is responsible for VAT and is required to register if the registration threshold is met.

Electronic-services are services, including intangible assets that are delivered automatically through the internet or other electronic network, and cannot be delivered without such technology. Electronic-platforms are defined as a market, channel, or any other process used by multiple service providers to deliver electronic-services to recipients.

Electronic service includes:

  • Digital products such as mobile applications;
  • Software programs;
  • Digital images, videos, and financial data;
  • Digital music, films, and games;
  • Distance teaching via pre-recorded medium such as online courses;
  • Electronic data management such website supply, web hosting, automated and digital maintenance of programmes;
  • Providing or supporting a business or personal presence on an electronic network;
  • Search engine such as customised search engine services;
  • Listing services for the right to put goods or services for sale on an online market or auction house;
  • On demand streaming services where there is no interaction with the content provider;
  • Advertising services on intangible media platform; and
  • Support services performed, via electronic means, for arranging and facilitating the completion of transactions, which may not be digital in nature such as commission fees to intermediaries, service fees to consumers and merchants for sale of products through the electronic marketplace.

Electronic service excludes:

  • Telecommunication services;
  • Payment channel or money transfer services; and
  • Electronic voucher delivered to the customer by e-mail or SMS to be redeemed for a meal, a hotel stay, or a theme park entrance;
  • Live teaching services, where the course content is delivered by a teacher over the Internet or an electronic network; and
  • Professional services involving human intervention and the nature of which is not essentially automated such as consulting services where advice from the consultant is communicated via e-mail or video call.