In accordance to the Revenue Code Amendment Act (No. 53) B.E. 2564 of the Revenue Department, non-residents or foreign online service providers and online platforms who earned more than THB 1.8 million per year from providing online services to non-VAT registered customers in Thailand must register for VAT, submit VAT returns and pay VAT by computing output tax without deducting input tax starting from 1 September 2021. Hence, the online service providers and online platforms are not required to issue a tax invoice or keep an input tax report.
Online services refers to service including incorporeal property which is rendered over the Internet or any other online network services that is impossible to deliver without information technology. Examples of online services includes:
- Digital products such as mobile applications
- Software programs
- Digital images, videos and financial data
- Digital music, films and games
- Distance teaching via pre-recorded medium such as online courses
- Electronic data management such as website supply, web-hosting, automated and digital maintenance of programs
- Providing or supporting a business or personal presence on an electronic network
- Search engine such as customized search-engine services
- Listing services for the right to put goods or services for sale on an online market or auction house
- On-demand streaming services where there is no interaction with the content provider
- Advertising services on intangible media platform
- Support services performed, via electronic means for arranging and facilitating the completion of transactions which may not be digital in nature such as commission fees to intermediaries, service fees to consumers and merchants for sale of products through the online marketplace
Meanwhile, the following are not categorized as an online service:
- Telecommunication services
- Payment channel or money transfer services
- Electronic voucher delivered to the customer by email or SMS to be redeemed for a meal, a hotel stay or a theme park entrance
- Live teaching services whereas the content of the course is delivered by a teacher over the Internet or an electronic network
- Professional services involving human intervention and the nature of which is not essentially automated such as consulting services where advice from the consultant is communicated via email or video call.
On the other hand, online platform refers to market, channel or any other procedures that service providers use to deliver their services to the customers. It serves as an intermediary between the service providers and customers and facilitates the service transactions. It can be in the form of website, mobile applications or other channels.
Such online service providers and online platforms are required to register in the Simplified VAT System for E-Service (SVE). This system allows users to register for VAT, file VAT returns, and pay VAT and request for VAT refund electronically.
Make sure you are filing Thailand taxes correctly. Consult with MSNA’s Thai tax experts now.