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FRIDAY, October 07, 2022
VAT takes effect for overseas e-service

VAT takes effect for overseas e-service

SUNDAY, September 12, 2021

The new value-added tax for electronic services from abroad (e- service) levied by the Revenue Department became effective on September 1.

Operators who provide electronic services abroad that are not registered for VAT in Thailand and have service income exceeding 1.8 million baht must register for VAT through the VAT for Electronic Service (VES) system on the Revenue Department’s website.

Legal entities or natural persons, both VAT-registered and non-VAT-registered, are included.

Merchants who sell online, using Facebook advertising tools, will also be affected, and are to pay 7 per cent VAT when shooting advertisements via the website after September 1.

The VAT-registered group, which are natural or juristic persons with income from sales of goods or services in excess of 1.8 million baht per year, will not be charged an additional 7 per cent VAT at the time of advertisement. But VAT must be filed later by notifying Facebook that the VAT has been registered. For example, if the system charges 1,000 baht (excluding VAT) for advertisement, 70 baht VAT must be filed and the amount will be refunded later.

The registration steps are as follows:

1. Go to payment system

2. Select company and business information

3. Enter your taxpayer identification number.

4. Click Save Changes.

After completing the above information, the system will not include VAT when shooting an advertisement. The P.P. 36 tax form will need to be submitted to the Revenue Department not later than the seventh day of the following month.


For the non-VAT-registered group, or non-VAT individuals or juristic persons, the Facebook system will automatically deduct the 7 per cent VAT, which is nonrefundable. Facebook will remit VAT to the person. For example, if an advertisement shoot costs 1,000 baht, the person will be charged 1,070 baht and no further procedure is required.