On 9 June 2020, the Thai cabinet approved draft legislation amending the Thai Revenue Code to provide for the collection of value-added tax (“VAT“) on foreign digital platform providers and sales of digital products (“e-Services“) such as online booking platforms, online entertainment streaming, and e-commerce platforms.
This amendment to the Revenue Code requires non-resident foreign entities, earning annual revenues in Thailand of at least THB 1.8 million or more to register as VAT operators in Thailand and begin to both file VAT returns and pay over VAT at the rate of 7% to the Thai Revenue Department.
This legislation will now proceed to the National Legislative Assembly for enactment via the vote of the Assembly.
We here at DFDL will continue to monitor the progress of this new law and provide further updates on developments, as they arise.
While this document is updated on a regular basis, it has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, or other professional advice.