Frequently Asked Questions - Thai VAT
What is VAT?
VAT is the abbreviation of Value Added Tax. VAT is in general due when goods and/or services are sold. It applies to most goods and services supplied for use or consumption in Thailand. VAT is a consumption tax because it is ultimately borne by the final consumer.
Who must pay VAT?
Generally, VAT is invoiced by the supplier that is selling goods or services and collected from the customer. Subsequently, the supplier reports and remits the collected VAT to the tax authorities.
Effective 1 September 2021, where a non-resident electronic service provider (such as Zoom) provides electronic services to non-VAT registered customers in Thailand, there is a requirement to collect and remit VAT on the supplies. The responsibility to collect and remit VAT depends on whether the Thai customer is VAT registered or not.
If you are a VAT registered customer, you should provide Zoom with your VAT number. If your VAT registration number is valid, then no VAT will be charged on the supplies made to you by Zoom, however, you may be required to self-assess by remitting the VAT to the tax authorities (using form PP36). If you are not a VAT registered customer, VAT will be charged on the supplies made to you.
Why am I being charged VAT?
Effective on or shortly after 1 September 2021, Zoom is registered for VAT in Thailand as a non-resident supplier of electronic services. As such, Zoom is required to collect and remit VAT on supplies made to non-VAT registered customers in Thailand.
What is a VAT registration number?
A VAT registration number is a 13-digit number issued to businesses in Thailand who are incorporated in Thailand or registered for carrying on business in Thailand.
How do I enter my VAT registration number?
To enter the VAT registration number, please follow these steps:
- Sign into the Zoom web portal.
- Under Account Management, choose Billing.
- Under Billing Contact, choose to edit the VAT Number (which appears after the Billing Contact Address field).
- Enter your VAT ID number and click Save.
You are required to notify Zoom if there is any termination or change to your VAT registration status (e.g., name or address etc.)
Does Zoom have a VAT registration number in Thailand?
Yes, Zoom’s Thai VAT registration number will be shown on the invoice it issues to you.
How is Zoom determining which customers VAT applies to?
If a customer's ‘Sold To’ location is in Thailand, and the customer has not provided a valid VAT registration number, Zoom will charge Thai VAT on its invoices to you.
Is there a minimum threshold purchase amount before VAT is applied?
No, where a customer in Thailand has not provided a valid VAT registration number, Zoom will charge VAT on all supplies made to you.
Are there any VAT obligations for me as a customer?
If you have provided a valid VAT registration number to Zoom, no VAT will be charged on the supplies made to you. However, you may be required to report the purchase and self-assess for the VAT under the “reverse charge” mechanism in your VAT return (using form PP36). There is no VAT obligation for a customer who is not registered for VAT in Thailand.
What if I have a VAT registration number and forget to enter it?
Your VAT registration number may be entered at any time. If entered before the next invoice, Zoom will not charge VAT on the next invoice or future invoices issued to you. If no valid VAT registration number is entered at the time the next invoice is issued, VAT will be charged until a valid VAT registration number is provided. No retrospective adjustments will be made where you did not provide your valid VAT number to Zoom.
Decision tree – My “Sold To” address is Thailand; will I be charged VAT?
Every customer is unique and so are their specific tax circumstances. The above stated information should not be considered as tax advice, but as a general overview of relevant VAT rules in Thailand. Zoom cannot provide you with tax advice for your individual situation, and therefore we strongly recommend speaking with a professional tax advisor for tailored advice.