My firm is in the VAT system. At some point it may provide services to people located outside of Thailand.

Can anyone confirm if we need to charge them VAT? I'd heard that in the case the service is provided inside Thailand, but used outside of Thailand, a "0% VAT" rate should be used, i.e., no VAT is charged.

Is this correct? And does it matter in which country the service receiver is?

Many thanks, Misty

If the service is used outside Thailand, it is regarded as export service and subject to VAT at 0%.

But if the service is provided to a non-resident but that service is viewed as received in Thailand, then VAT at 7% is applicable. The provider of that service in Thailand is supposed to pay that VAT and claim as an input VAT a month thereafter.

The difference between these two types of services is best exemplified by a legal firm providing advisory services to a Dutch company on tax or legal matter, then that is an export services. But if the legal firm providing services of incorporating a company in Thailand, then that is viewed as a domestic service even though the hirer is outside Thailand.

It does not matter which country the service receiver is.

If the service is used outside Thailand, it is regarded as export service and subject to VAT at 0%.

But if the service is provided to a non-resident but that service is viewed as received in Thailand, then VAT at 7% is applicable. The provider of that service in Thailand is supposed to pay that VAT and claim as an input VAT a month thereafter.

The difference between these two types of services is best exemplified by a legal firm providing advisory services to a Dutch company on tax or legal matter, then that is an export services. But if the legal firm providing services of incorporating a company in Thailand, then that is viewed as a domestic service even though the hirer is outside Thailand.

It does not matter which country the service receiver is.

Hi Irene,

Thanks very much for your explanation. For what you've written, it would seem that in our situation that the service would be considered an export service, and therefore subject to VAT at 0%.

Best rgds, Misty