The transfer of cryptocurrencies and/or digital tokens (hereinafter collectively referred to as the “Digital Assets”) in Thailand would be considered a provision of electronic service under the Thailand Revenue Code (the “TRC”), and the income from such transfer shall be subjected to VAT
at the rate of 7%.
However, the Thai Revenue Department (“TRD”) issued a royal gazette to exempt VAT obligation on a transfer of Digital Assets executed on 1st April 2022 until 31st December 2023 by legislating two decrees as follows:
- The Royal Decree issued under the Revenue Code Re: VAT exemption (No. 744) B.E. 2565 (2022) exempts VAT obligation of any transactions related to the licensed digital asset exchanges endorsed by the Thai Securities and Exchange Commission (the “Thai Exchange”) which the TRD interprets that the transfer granting VAT exemption shall include the following:
a) Transfer from the foreign exchanges to the Thai Exchanges
b) Transfer from Thai Exchange to another Thai Exchange
c) Transaction within Thai Exchanges, including acquisition, distribution, and interaction and
d) Transfer from Thai Exchanges to the foreign exchanges - The Royal Decree issued under the Revenue Code Re: VAT exemption (No. 745) B.E. 2565 (2022) exempts VAT obligation from the transfer of Retail Central Bank Digital Currency issued by the Bank of Thailand under its pilot project for the usability of the public sector.1.1 Transfer from the foreign exchanges to the Thai Exchanges.
Therefore, any transfer of Digital assets, (i) made before 1st April 2022 and (ii) not related to the Thai Exchange, might be subject to VAT implications if the Digital Assets are recognized on an inventory basis and meet the criteria to be VAT business operators.
Should you have any inquiries, please feel free to contact [email protected] and [email protected] or call +662-027-7802.
