Tax rate by region Thailand

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The information provided on this page is intended for general informative purposes only. It should not be interpreted as tax advice, nor is it meant to be. For advice on your particular tax responsibilities, consult with an experienced tax expert. PayPro Global does not assume any responsibility for any action taken or not taken based on the information presented here.

VAT in Thailand: A Comprehensive Overview for SaaS and Digital Products

Thailand implemented the Value-Added Tax (VAT) system in 1992 to enhance its tax infrastructure and revenue generation. VAT applies to most goods and services, including Software-as-a-Service (SaaS), at the standard rate of 7%. There is currently no reduced VAT rate in Thailand. E-books, including electronic newspapers, magazines, and textbooks, are exempt from VAT.

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Thailand

Thailand implemented a VAT system in 1992 to modernize its tax framework and enhance revenue generation.

Official government link: Revenue Department

7.00%

E-products and services VAT/Sales tax rate

Reduced tax rate product categories

No specific digital goods or services have reduced tax

Exempted product categories

E-books, including newspapers, magazines, and textbooks in electronic form

Reverse charge mechanism for B2B sales

Yes

Tax ID validation required

Yes

When do you have to register

Once the threshold has been exceeded

Online registration possible

Yes

Local representative needed

No

Registration procedure

The VAT registration form must be completed and submitted online through the Simplified VAT System for e-Service (SVE) on the Revenue Department’s website.

List of digital and electronic services liable for tax

Mobile applications
Software programs
Digital images, videos, and financial data
Digital music, films, and games
Distance teaching via a 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 engines 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 platforms

Penalties

Conducting business without VAT registration incurs a fine of either twice the tax due for each month of non-compliance or 1,000 Baht per month, whichever is greater. Late filing of VAT returns results in a fine of twice the tax due for the respective tax month. Additionally, filing an incorrect tax return that impacts the amount of tax due will lead to a fine based on the affected tax amount.

Registration threshold

THB 1,800,000

Filing interval

Monthly

Filing deadline

Between the 1st and 23rd day of the next tax month

E-invoicing requirements

Not mandatory

Record keeping

For a minimum of 5 years the following must be kept:

Sales invoices issued
Purchase invoices received
VAT returns filed
Proof of VAT payments made
Customs documentation for imported goods
Accounting records supporting VAT calculations

How-To Guides: Thailand SaaS VAT

Step: 1 Threshold

Effective September 1, 2021, Thailand requires non-resident vendors (including online platforms) of digital services to consumers (B2C) in Thailand to register for and collect VAT if their sales exceed THB 1.8 million in a 12-month period.

 

On August 15, 2023, Thailand published Royal Decree No. 779, which establishes corporate income tax and VAT exemptions for transfers of digital investment tokens effective August 16, 2023.

 

Registration is mandatory if your income from B2C digital services exceeds the threshold.

Step: 2 Business Registration

Register online via the Revenue Department’s VES (VAT for Electronic Service) system. This is a simplified “Pay-Only” regime for foreign businesses.

Step: 3 Obtain TIN

Upon registration, you will be issued a Tax Identification Number (TIN) specifically for the VES system, which acts as your username for filings

Step: 1 Standard VAT Rate

In Thailand, the standard VAT rate is 7%.

Step: 2 VAT Formula

To calculate your tax amount, use the following formula

 

VAT Amount = Net Price x 7%

Step: 3 Reverse Charge (B2B)

Yes. Supplies of digital services to VAT-registered Thai businesses are subject to the Reverse Charge Mechanism (Self-Assessment). The foreign supplier does not charge VAT; the Thai buyer remits the VAT via Form P.P.36.

Step: 1 Selling B2C

You must charge 7% VAT on all digital services supplied to non-VAT registered persons (consumers) in Thailand.

Step: 2 Selling B2B

• Registered Buyer: Do not charge VAT. The buyer is liable to self-assess the tax.
• Unregistered Buyer: Treat as a B2C transaction and charge 7% VAT.

Step: 3 Invoice Requirements

Foreign providers registered under the VES system are prohibited from issuing formal “Tax Invoices” (which allow input tax credits). However, for commercial records, you should issue a receipt containing:

• Supplier Name & TIN
• Customer Name
• Date & Service Description
• Amount Paid (showing VAT included or added)

Step: 1 Filing Interval

File the VAT return Monthly.

Step: 2 Filing Deadline

Returns and payments must be submitted by the 23rd day of the month following the tax period (e.g., January return is due by February 23).

Step: 3 Submission

File Form P.P.30.9 electronically via the VES System. Payments can be made via credit card or international wire transfer.

Step: 4 Record Keeping

Maintain records of output tax and service details for a minimum of 5 years.

PayPro Global Solution: Simplified Registration & Fiscal Representation

Navigating Thailand’s VAT registration and fiscal representation can be daunting. PayPro Global acts as your Merchant of Record, handling these complexities, including VAT registration and fiscal representation where needed, so you can focus on your business.

Learn more about our MoR services.

FAQ

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