On June 10, 2020, the cabinet approved a draft bill that revises VAT collection on foreign digital services by requiring foreign electronic service providers to register for VAT if they earn income from providing more than 1.8 million baht (approximately USD 57,900) worth of digital services to users in Thailand each year. There will be a “pay-only” system, meaning that a foreign supplier will have to pay VAT on digital services provided to non-VAT registrant consumers without offsetting input VAT. This new tax will apply to a range of electronic services including streaming games, music, apps, films, e-books, e-journals and internet services.
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