Ishan Shah
Q: What is the scope of e-Service VAT?
A: The purpose of e-service VAT is to collect 7% VAT from foreign electronic service providers and electronic platforms that provide services to users in Thailand and derive revenue of more than THB 1.8 million in an accounting year.
Q: What does electronic service mean?
A: The Revenue Code under Section 77/1(10/1) defines “electronic service” as service including incorporeal property which is delivered over the Internet or any other electronic network and the nature in which renders their service essentially automated and impossible to provide such services in the absence of information technology.
Q: What does the Electronic Platform mean?
A: The Revenue Code under Section 77/1(10/2) defines “electronic platform” as a market, a channel, or any other processes that several service providers use to provide electronic services to the service recipients. The electronic platform acts as an intermediary between service providers and service recipients to facilitate service transactions.
Q: What does e-Service provided from abroad mean?
A: e-Service provided by a juristic person incorporated and operating business in other jurisdictions excluding Thailand and not having a permanent establishment in Thailand or electronic service provided by an individual who is not a resident in Thailand.
Q: How to determine if the services are used in Thailand?
A: In order to determine that electronic services are used in Thailand, the non-resident electronic services provider or electronic platforms need to collect customer information, such as:
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Payment information (e.g. credit card information, bank account details)
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Residence information (e.g. home address, billing address)
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Access information (e.g. mobile country code, IP address)
Q: How to determine VAT registration status of the customer?
A: Non-resident electronic services providers and electronic platforms must consider the services recipients as non- value added tax (VAT) registrants, unless they have information determining that they are registered for VAT in Thailand and have 13-digit VAT registration number. The VAT registration number can be verified on Thai website of Revenue Department: VATINFO (rd.go.th).
Q: What documents would you need to prepare?
A: Form no. PP 01.9 must be submitted for value added tax (VAT) registration along with the following documents:
Juristic Person
(1) Certificate of incorporation, officially translated in English and containing entity name, date of incorporation, and country of incorporation. The document must be notarized by the Ministry of Foreign Affairs, a notary public or other agencies that are authorized to notaries documents based on the law of the country where the businessperson is incorporated.
(2) Certificate of tax residency in the country of incorporation. (optional)
Individual
(1) A copy of the individual’s valid passport (only the first information page showing the passport holder’s name, photo, and passport number) or a copy of the individual’s valid national ID card.
(2) Certificate of tax residency in the country where the individual is a tax resident. (optional)
Q: Does registration for e-Service VAT constitute a permanent establishment in Thailand?
A: The registration for e-Service VAT in Thailand would not on its own be a determining factor for having a permanent establishment in Thailand. The conditions in the Thai Revenue Code and the Double Taxation Agreements will be relied on to determine whether a non-resident has a created a Permanent Establishment in Thailand for tax purposes.
Q: What will be considered as a tax point for VAT?
A: The full or partial value added tax (VAT) liability of a non-resident providing electronic services from abroad to customers in Thailand arises when the service fee is paid in whole or in part. In case the payments are received by a credit card, the VAT liability arises when a proof of credit card usage is issued.
Q: What reports are required to be prepared for VAT filing?
A: Non-resident electronic service provider and electronic platform registered for value added tax (VAT) shall file VAT return (P.P.30.9) and remit VAT on a monthly basis via SVE. The due date for filing VAT returns is 23rd of the following month in which VAT liability arises. Output VAT reports must also be prepared in prescribed format. The VAT returns, output tax reports as well as the documents used to produce those reports must be kept for at least 5 years from the date of tax filing or report making. The output tax reports are not required to be submitted to the Revenue Department unless requested.
Q: Does non-resident electronic service provider and electronic platform have the right to request a VAT refund?
A: Non-resident electronic provider and electronic platform have the right to request a refund in various cases such as overpayment of value added tax (VAT) collected from VAT registered customers, overpayment of VAT collected from customers who are not in Thailand, overpayment of VAT collected from non-electronic services, or overpayment of VAT resulting from miscalculation or redundancies. For VAT refund, VAT operator shall submit a request for VAT refund via the Simplified VAT System for e-Service (SVE).
Q: When do you request a VAT refund?
A: The value added tax (VAT) refund request must be submitted within 3 years from the date of VAT payment and VAT registrant shall attach supporting documents to prove that the excess VAT has been paid by uploading the documents via the Simplified VAT System for e-Service (SVE).
Q: Does the non-resident electronic service provider or electronic platform need to issue the tax invoices for customers in Thailand?
A: Non-resident electronic service provider or electronic platform are not required to issue tax invoices under Thailand regulations.
Q: What are the implications for non-compliance?
A: If a non-resident electronic service provider or electronic platform fail to comply with the regulations, they shall be subject to civil and criminal penalties.
Civil Penalty
Offence |
Penalty |
Conducting business without VAT registration |
A fine twice the tax due in tax month for the duration of failure to comply with such provision, or THB 1,000 per month, whichever is greater. |
Late filing of VAT returns |
A fine twice the tax due in tax month |
Filing incorrect tax return affecting the amount of tax due |
Fine for the affected amount of tax |
If non-resident electronic service provider or electronic platform fail to pay or remit tax within the tax filing deadline, they shall be liable to a surcharge of 1.5 percent of payable excluding fine per month or part of the month. The calculation of surcharge shall be done from the day following the tax filing deadline to the data of tax payment, but the calculated surcharge shall not exceed the amount of tax payable. |
Criminal Penalty
Offence |
Penalty |
Failure to register for VAT and conducting business without registration |
A sentence of no more than 1 month or a fine of no more than THB 5,000 or both. |
Non-filing of VAT returns |
A fine of no more than THB 2,000. |
Failing to make reports as prescribed by the Director General |
A sentence no more than 6 months or a fine of no more than THB 10,000 or both. |
Intention to evade or trying to evade value added tax, issuing tax invoice, debit note, or credit note without authorization. |
A sentence from 3 months up to 7 years and a fine of THB 2,000 up to THB 200,000. |
Disclaimer: This page contains information in summary form and is therefore intended for general guidance only. It is not intended to be a substitute for detailed research or the exercise of professional judgment. No responsibility is accepted for any errors or omissions, howsoever caused, that this publication may contain, or for any losses sustained by any person as a result of reliance on any information contained herein. It is recommended that readers seek professional guidance on any of the matters noted here.
Updated on: 10 August 2021