THAILAND: VAT Waived for Crypto Transfers and Thai CBDC
27 June 2022
Thailand has exempted from value-added tax (VAT) the transfer of cryptocurrencies or digital tokens via licensed digital asset exchanges, as well as the transfer of the central bank digital currency (CBDC) issued by the Bank of Thailand (BOT). A royal decree issued on 24 May 2022 under the country’s Revenue Code states that crypto and digital asset transfers on registered exchanges made from 1 April 2022 until 31 December 2023 will be exempt from 7% VAT, effective 25 May 2022. Another decree released on the same day said the same exemption and period will apply to transfers of Thailand’s Central Bank Digital Currency (CBDC), which will be available to the public for testing later this year.
The introduction of the VAT waiver does not indicate that the Thai government has changed its decision not to allow digital currencies to be used as a method of payment for goods and services. The SEC and the BOT announced in March this year that from 1 April 2022 cryptocurrencies cannot be used for payment for goods and services and should only be used as investment vehicles.
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