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VAT Reporting Rule Includes Nonresident Businesses

26 July 2018

Legislation proposed by the Thailand Revenue department would require that foreign businesses earning income in the Kingdom collect and pay VAT on their transactions, even if they have no physical presence in Thailand.

The proposal is intended to support a bill creating an e-business tax on online purchases, advertisements, and website space rent in Thailand that is earned by businesses outside the country. Platform operators with a foreign presence will be obliged to remit VAT from transactions completed in Thailand to the Revenue department using an electronic payment channel.

If the law is enacted, overseas companies that profit from advertising and website space rental in the Kingdom will also be subject to a 15% e-business tax.


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