Skip to main content

The Electronic Means On Electronic Service Provided By Non-Resident Business Person

  • Articles

The Electronic Means On Electronic Service Provided By Non-Resident Business Person

On 23 August 2021, the Ministry of Finance issued Ministerial Regulation (No. 377) (B.E.2564) (2021) in order to stipulate the criteria on the electronic means of documents, evidence and VAT registration for non-resident business persons who have provided electronic service from abroad (known as “e-service” by the Revenue Department. This regulation is effective as of1 September 2021.

The law on electronic transactions has been in effect since 20021 and the legislative branch has amended the Revenue Code in order to improve the rules for collecting VAT related to e-service provided from abroad which is used Thailand by non-registered users. Consequently, overseas based operators are required to pay VAT under the Revenue Code. To facilitate and increase the efficiency of VAT collection, it is necessary to prescribe the criteria for contact between a business person and the Revenue Department regarding the preparation, submission, receipt or retention of documents or evidence related to VAT which shall be carried out via electronic means. Said electronic means shall comprise at least one of the following processes:

  • 1) Authentication and verification of the identity of the business person or the revenue official;
  • 2) Security of information; and
  • 3) Process of retaining the documents and evidence in a proper format which can be shown or referred to for later use, and maintaining completeness of the text in documents and evidence.

In this regard, the preparation of documents and evidence under the Revenue Code shall be performed in a way that can be accessed and utilised again without changing the meaning, and at  a standard not lower than as prescribed under the law on electronic transactions.

Submitting and receiving the documents and evidence via electronic means shall be completed when a message confirming the receipt of documents and evidence appears in the system. The message shall contain details about the documents and evidence, including the date and time of submission; and it shall be deemed that the business person has certified the correctness and completeness of the information contained in the documents and evidence submitted.

In addition, in the case of VAT registration, changes in VAT registration, withdrawal or revocation of VAT registration, or performance of any other actions related to VAT registration, the non-resident business person, who has income exceeding Baht 1.8 million per year (value of the tax base for small businessesi) and provides e-services to non-VAT registered persons in Thailand, must register and submit related documents through the VAT for Electronic System (VES) on the Revenue Department’s website (URL: https://eservice.rd.go.th/rd-ves-web/landing). In this regard, a business person shall submit an application for VAT registration within 30 days from:

  • a) the date upon which the value of the tax base of the business exceeds the value of the tax base for small businesses, which is Baht 1.8 million currently; or
  • b) the date upon which the royal decree comes into force, in the case where there is a royal decree determining the new value of the tax base of small businesses, or where a royal decree is amended so that the value of the tax base of small businesses is less than that previously determined.

Nonetheless, a non-resident business person whose value of its tax base for its business does not exceed Baht 1.8 million per year can also apply for VAT registration to the Revenue Department by submitting the application before the date upon which the value of the tax base exceeds Baht 1.8 million per year.

The Revenue Department commenced the VAT registration service on 16 August 2021. In the case where requests, documents and evidence are correct and complete, and the business person submitting the request has never been a VAT registrant whose VAT registration has been revoked by the Director-General; the Revenue Department shall announce the business person as a VAT registrant at https://eservice.rd.go.th/rd-ves-web/search/company, instead of issuing a certificate of VAT registration to such VAT registrant, and it shall be deemed that such business person has displayed a certificate of VAT registration under Section 85/4 of the Revenue Code. In this regard, the business person shall be a VAT registrant as of the date of submitting the VAT registration application.

In the case where there are the following changes to a VAT registration, the VAT registrant shall notify the change through VES within 15 days from the date upon which the change occurs:

  • 1) Change in essential particulars in VAT registration, which are changes in the business person’s name, business e-mail address or address on the Internet or other electronic network used in business operations (business website);
  • 2) Temporary cessation of business for more than 30 consecutive days;
  • 3) Moving of a place of business;
  • 4) Cessation of business, including a transfer of the entire business to another business person and a merger into a new business person; or
  • 5) Other changes as announced by the Director-General.

After notifying the changes in VAT registration, the documents related to such changes must be submitted to the Revenue Department by uploading the documents via VES.

In the following cases, the Director-General shall order the name of a VAT registrant to be revoked from the VAT register:

  • 1) When the VAT registrant ceases its business;
  • 2) When the Director-General orders the withdrawal of VAT registration; or
  • 3) When the Director-General orders the revocation of VAT registration.

In the case where the VAT registrant ceases the business or the Director-General orders the withdrawal of VAT registration, the Revenue Department shall notify the VAT registrant via VES. The VAT registrant has liability as a VAT registrant until the Director-General orders the name of the VAT registrant to be deleted from the VAT register. When the Director-General approves to delete the name, the Revenue Department shall notify to the VAT registrant and announce the name of the VAT registrant who has been deleted through VES; and it shall be deemed that such VAT registrant has returned the certificate of VAT registration.

The author opines that the regulations to collect e-service tax will create fair competition between Thai and overseas business operators. Therefore, the law is amended in order to impose e-service tax on overseas business operators. In this regard, the Revenue Department has issued a guide on VAT on e-service for non-resident business person providing e-service in Thailand. For more details, please see: https://www.rd.go.th/fileadmin/download/eService.pdf 

  • 1 Electronic Transactions Act B.E. 2544 (2001)
  • i Section 4 of the Royal Decree (No. 432) B.E. 2548 (2005) stipulates that the value of the tax base for small businesses under Section 81/1 of the Revenue Code must not exceed Baht 1.8 million per year.