VAT Registration for Foreign Companies


On 1 September 2021, foreign companies with revenues of over THB 1,800,000 per year providing digital services in Thailand will be required to pay VAT in Thailand.

Given this latest requirement, Silk Legal’s accounting department is already working with various clients and registering them for VAT returns which are to be filed on a monthly basis.

  • Foreign Company Registration

    Overseas digital services and platform providers who offer services to subscribers in Thailand and have a revenue in excess of 1,800,000 THB will be required to pay VAT within the 15th of each month.

    If your company falls within this category, Silk Legal can provide you assistance with your VAT matters given our expertise in the practice.

  • How it will be Tracked and Enforced

    Thailand’s Revenue Department is currently in the process of setting up a website that will list current foreign registrants with the intention of displaying reputable companies as well as those who have yet to pay their dues. The Revenue Department is also willing to subpoena financial institutions to verify where payments are being made to overseas companies.

  • The Process

    The Revenue Department is expected to announce a formal process for registration and payment. For now, the process involves a pay-only system that does not need to be prepared alongside tax invoices or tax reports.

  • Who do these regulations seek to target?

    The idea behind this amendment to the Revenue Code is to create a “fair playing field” for companies based in Thailand. Some of the most prolific international companies providing services to Thai consumers include:

    • Apple
    • Microsoft
    • Netflix
    • Google (including YouTube)
    • Line
    • Epic Games
    • Amazon (including AWS)

    Given that these major international companies do not pay the 7% VAT that Thailand-based companies are required to, they effectively have an advantage over local businesses. By leveling the tax rate across all companies, those based in Thailand will be able to compete effectively.