With effect from 1 September 2021, Thailand will impose value-added tax (“VAT”) liability on foreign digital service providers with an aim to level the playing field between domestic and foreign online operators. Key takeaways from this notable change can be summarized as follows:
Key proposed changes under the Draft Amendment are as follows:
1 “e-service” is defined as a service that includes incorporeal property delivered through the internet or other electronic means, where the service is, in essence, performed automatically, and where the service cannot be performed without information technology.
2 “e-platform” is defined as a market, channel, or any other process or method that multiple service providers can use to provide e-services.
This document is solely intended to provide an update on recent development in Thailand legislation and is not purported to provide a legal opinion, nor a legal advice to any person.