Does non-resident foreigner seller, acting as Non-PE Role, be allowed to register a  VAT number  in Thailand?

Client Asking:
if  Foreigner Electronic Services Providers  can apply non-resident VAT to do electronic services in Thailand?

Evershine RD Answer:
Yes
Please see below linking webpages and its tilte

eService (rd.go.th)

Should I pay Thailand’s VAT on electronic services?

If you are a foreign service operator or electronic platform of electronic services provided to non-VAT registered customers in Thailand with income from such services of more than 1.8 million baht per year, you should be subject to Thailand’s VAT on electronic services.

FAQs: Cross border VAT on electronic service in Thailand

Updated October 2021 FAQs: Cross border VAT on electronic service in Thailand The Revenue Department of Thailand.

eService.pdf (rd.go.th)

A Guide on VAT on Electronic Service Provided to Non-VAT Registrants in Thailand by Non-resident Business Person (Second Edition) Published by the Revenue Department May 2022

Register (rd.go.th)
VES Registration Guide

registration_instruction.pdf (rd.go.th)

Instructions for Completing the Form for Value Added Tax Registration for Non-Residents (P.P.01.9)

Register (rd.go.th)

Please fill out the registration information in English.

Client Asking:
Does the VAT registration of non-resident electronic service providers and electronic platforms constitute a permanent establishment (PE) for income tax purposes in Thailand?

Evershine RD Answer:
The VAT registration in Thailand would not on its own be a determining factor for whether it has PE in Thailand. Thailand will continue to rely on its domestic income tax law and the provisions of its Double Taxation Agreements to determine whether the non-resident has a PE in Thailand for income tax purposes.

Client Asking:
Does non-resident foreigner seller, acting as Non-PE Role, be allowed to register a  VAT number  in Thailand?

Evershine RD Answer:
10.4
If a foreign person makes a taxable supply in Thailand, it may appoint a VAT agent to issue tax invoices and file VAT returns on its behalf. The appointment of a VAT agent must be approved by the Director-General of the Thai Revenue Department.

For more information about tax representatives, see Section 9.2.

9.2

Tax Representation and Agents

Where a nonresident habitually makes supplies of goods or services in Thailand through its local agent, the agent is required to register for VAT on behalf of the nonresident person and issue tax invoices on its behalf under Section 82/1 of the Thai Revenue Code.

The agent also has an obligation to prepare relevant VAT reports and filings, i.e., output book, input book, and stock and raw material book for the nonresident. Additionally, the agent is required to keep relevant VAT documents, e.g., a copy of the tax invoices and supporting documents.

The VAT agent and the foreign principal have joint responsibility and liability with respect to tax invoices.

The requirement to appoint an agent does not apply in the case of inbound supplies of business-to-consumer electronic services on or after September 1, 2021. For more information, see Section 3.5, Section 4.7.4 and the discussion of electronic platforms, below.

Electronic Platforms On or After September 1, 2021

On or after September 1, 2021, under Section 82/13 of the Thai Revenue Code, an electronic platform entrepreneur is liable to register and account for VAT on behalf of nonresident electronic service providers if it meets the registration threshold, and is responsible for offering and delivering services, as well as receiving payments on behalf of the supplier.

Foreign suppliers providing services via a VAT registered electronic platform are not required to register themselves for VAT in Thailand as a result of those services. The platform is not required to report details of each foreign supplier.

For information about the registration threshold, see Section 3.1.

3.1

Mandatory Registration Threshold

An entrepreneur that has an annual taxable turnover exceeding 1.8 million baht is required to register for VAT under Section 85/1 of the Thai Revenue Code.

Turnover from activities that are exempt or otherwise not subject to VAT in Thailand does not count towards the registration threshold.

An importer is subject to VAT in Thailand whether or not the importer is registered.

Further Information

For information about nonresident taxable persons, see Section 3.5. For information about registration procedures, see Section 10.1.