THAILAND: Guide to New VAT Obligations of Overseas Online Vendors Published

A Guide to VAT on Electronic Services Provided to Non-VAT Registrants in Thailand by Non-resident Business Persons has been issued by the country’s Revenue Department. This is said to provide comprehensive details of the changes to the VAT regime affecting electronic services providers (ESPs) that are due to come into force in September this year. In line with this, it details the services affected, as well as outlining the registration, filing, payment and refund procedures. In addition, it provides information on the validation of Thai VAT numbers and the use of foreign exchange sources for the conversion of foreign currencies to the baht. 

The guide follows on from earlier-introduced legislation that obliges non-resident ESPs to register for, charge, and remit VAT as of 1 September this year. This sees business-to-consumer ESPs mandated to pay VAT if they have yearly turnover of THB1.8 million (US$60,000) or above. The regulations also specify that VAT collection is the responsibility of the relevant electronic marketplace operator rather than the vendor if the transaction is conducted via a marketplace with an integrated billing function.