Thailand VAT Registrations Explained

Once you have determined that registration is required, the next step is understanding which registration scheme applies to your business. Thailand offers two registration pathways.

Registration Scheme 1: Standard VAT Registration

Who qualifies: Resident businesses and non-resident businesses that have a physical presence or permanent establishment (PE) in Thailand.

Scope of supplies covered: All taxable supplies, including both B2B and B2C transactions, goods and services.

Input tax credits: Available. You may offset input VAT paid against output VAT collected.

Filing currency: Thai Baht (THB) only.

When to use this scheme: If your business has a local entity, office, or other permanent establishment in Thailand, this is the required registration track.

Registration Scheme 2: VES (VAT on Electronic Services)

Who qualifies: Non-resident electronic service providers and electronic platforms without a PE in Thailand.

Scope of supplies covered: B2C electronic services only, meaning sales to non-VAT-registered customers in Thailand.

Input tax credits: Not available. VES is a "pay only" scheme. You collect and remit VAT but cannot claim credits on your inputs.

Filing currency: Thai Baht (THB). If you invoice in a foreign currency, it must be converted using the Bank of Thailand's average buying rate on the last business day of the month.

When to use this scheme: If you are a non-resident SaaS or digital services company selling to consumers in Thailand and your annual revenue from those B2C sales exceeds THB 1.8 million.

Can Both Schemes Coexist?

No. A business can only operate under one scheme at a time. If a VES-registered non-resident later establishes a PE in Thailand, it must migrate to standard VAT registration.

B2B Sales and Registration

Non-resident sellers providing services to Thai VAT-registered businesses (B2B) do not need to register for Thai VAT solely on account of those B2B sales. The Thai buyer handles the tax obligation through reverse charge (Form P.P.36). VES registration is only required once B2C sales exceed the THB 1.8 million threshold.

Preferred Scheme for Non-Resident SaaS Companies

For a non-resident SaaS company selling cross-border to Thai customers, VES is the correct registration scheme for B2C sales. B2B sales are handled via reverse charge on the buyer's side, so no seller-side registration is needed for B2B. If both B2B and B2C sales exist, only VES registration is required (for the B2C portion), once the threshold is crossed.

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