The Thai Revenue Department (“TRD”) has issued a third draft of the proposed tax legislative amendments on VAT regulations that will impact foreign e-commerce operators (“foreign companies”) and electronic platforms available to the Thai market. Public hearing process is currently open until 29 January 2020. All public stakeholders are encouraged to submit their comments on the draft amendments. KPMG in Thailand can assist with submissions.
The draft of the proposed legislative amendments to the current VAT provisions of the Revenue Code (“proposed VAT amendments”) was issued on 14 January 2020, and is now in the process of public hearing until 29 January 2020. All interested stakeholders can submit their comments on the third draft of the proposed VAT amendments through the TRD’s website.
Under this draft, the key VAT obligations of foreign companies providing electronic services to non-VAT registered recipients remain unchanged from the previously issued draft. To recap,
The key highlights in the third draft of the proposed VAT amendments are:
- Any intangible assets transferred via internet network or any other electronic network will be excluded from the definition of “goods”.
- “Electronic service” means a service delivered through internet network or any other electronic network with substantially automated nature and such service cannot be provided without information technology; and
- “Electronic platform” means markets, channels or any other method that several service providers use to provide electronic services to service recipients.
Although the third draft of the proposed VAT amendments provides some clarity on issues previously not addressed, further clarifications and guidance are required on various uncertain aspects as well as practical implications.
KPMG is at the forefront of the developments on this subject and will be pleased to discuss the potential impact of these proposed amendments to your business. KPMG is also preparing a submission to the TRD to be provided before the 29 January 2020 deadline and welcomes your comments and feedback.