THAILAND: Overseas E-Service Operators Liable for VAT from September

VAT is to be payable on services digitally delivered by oversea-based suppliers from 1 September this year. In line with this, all such businesses will be required to register for VAT and to submit monthly returns and associated payments without deducting any output tax.

In the case of businesses that provide e-services via a third-party, which supports the whole service provision sequence from service proposal, payment, delivery, and other processes (to be detailed later by the Director-General of the Revenue Department), the operator of the e-platform will be liable to pay VAT on behalf of the overseas provider. Under the terms of the new regulations, both e-service and e-platform providers are prohibited from issuing tax invoices to their customers.

The new requirements were announced via the Thai Government Gazette on 10 February and constitute the Act Amending the Revenue Code No. 53 B.E. 2564 (2021). ​​​​​​​