From 1 September 2021, offshore e-service providers are officially subject to VAT in Thailand.
The online registration system has been open since 16 August 2021 but the Ministerial Regulation No. 377 (B.E. 2564 (2021)) issued under the Revenue Code re: the Procedure Concerning Evidencing and Registering for Value Added Tax via Electronic Means for Offshore Electronic Service Providers (the “MR No. 377”), which sets out the details of VAT registration, was announced in the government gazette on 27 August 2021. The first tax filing and payment due date are set at 25 October 2021.
The MR No. 377 requires offshore e-service providers to register as VAT registrants via the online system of the Revenue Department (“RD”) (“SVE system”) within 30 days from the date when income from such e-service exceeds THB 1.8 million (approximately USD 55,520) per year. E-service providers can voluntarily register for VAT even if income from their services do not exceed THB 1.8 million. The RD manual requires e-service providers who have income exceeding THB 1.8 million before or on 3 August 2021 to register for VAT by 1 September 2021, and it is recommended that providers register for VAT as soon as possible.
Besides registering as VAT registrants, the MR No. 377 also provides that a VAT registrant must notify the RD of following changes within 15 days from the date of the changes via SVE system:
- change to the essential particulars in the VAT registration, including name, business email address and business website
- temporary business cessation for a continuous period of more than 30 days
- relocation of a business
- business cessation, including business cessation for business transfers and merger purposes
- other items as prescribed by the Director-General of the RD
The RD has issued a useful and detailed guideline on the registration of VAT on electronic services provided to non-VAT registrants in Thailand by offshore e-service providers and instructions for completing the registration.
Chandler MHM Limited
36th Floors Sathorn Square Office Tower 98 North Sathorn Road Silom, Bangrak, Bangkok 10500, Thailand