Thailand proposes to introduce VAT on electronic services

28 February 2018

Thailand is proposing to introduce VAT at 7% on the provision of electronic services in the country.

At present, foreign businesses providing digital services in Thailand do not have to charge VAT on their sales. However, in an effort to remove the unfair advantage that this gives to non-resident companies over Thai resident providers, the Thai government is proposing to implement VAT at 7% on the these types of transactions.

If introduced this new tax will be subject to a Baht 1.8 million threshold (approx. £41,000) and will likely apply to a range of electronic services including streaming games, music, apps, films, e-books, e-journals and internet services.

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