PP36 Thailand: VAT control for services bought from abroad

Revenue Code Section 83/6 requires the Thai payer to remit VAT where a business person provides a service abroad and that service is used in Thailand. The supplier's country and the words on the invoice are only part of the evidence. The contract, users, deliverables, access rights and business function help show where the benefit is actually consumed.

Cloud software used by a Thai team, remote consulting delivered into a Thai project, overseas support for local operations and a licence exploited in Thailand are common review candidates. A foreign conference attended and used abroad may have different facts. Build the decision into the monthly tax filing workflow rather than reviewing foreign payments only at year-end.

• Read the contract and statement of work, not only the invoice description.
• Record who uses the service, for which operation and in which country.
• Separate goods imports, services, licences and reimbursements before coding VAT.

Thailand's VAT for Electronic Service regime moved collection responsibility to qualifying foreign electronic-service providers for customers that are not VAT registered. The Revenue Department's e-Service guide also states that a VAT-registered customer using an electronic service from abroad still remits VAT through PP36.

The same guide distinguishes non-electronic services. A non-VAT customer can still be responsible for PP36 when it uses a non-electronic service supplied from abroad in Thailand. That makes customer VAT status and service type essential data fields. E-commerce teams buying advertising, marketplace tools or cloud subscriptions should add this check to the wider e-commerce accounting routine.

Revenue Code Section 78/1 ties the VAT liability for a service performed abroad and used in Thailand to receipt of full or partial payment. Revenue Department ruling 0706/P./10129 applies that logic to the payer and rejects filing PP36 before the foreign supplier was actually paid. A deposit, installment or card charge can therefore create its own tax event.

The Revenue Department's internet-filing notification requires PP36 within seven days after the end of the month of payment, with the next working day applying when the last day is a government holiday. Confirm the current channel and completion rules, including successful payment, through the Thailand tax calendar.

The Revenue Department confirms a current general VAT rate of 7 percent, and the 2026 extension keeps that rate through 30 September 2027. Calculate from the service amount subject to VAT and retain the foreign-currency conversion support used in the filing. Mixed invoices should be analyzed by component rather than assigned one treatment for convenience.

The PP36 form covers more than imported services, so select the correct liability type and do not copy a prior submission without checking the new payment. Foreign SaaS invoices, group management fees, consulting, technical support and licence charges can have different contract facts even when the payee is the same.

A foreign supplier invoice is not automatically the Thai tax document for input VAT. A Revenue Department ruling explains that VAT remitted through PP36 can be input tax for a VAT registrant and that the official Revenue Department receipt is treated as the tax invoice for this purpose. The deduction is tied to the month of remittance and remains subject to ordinary eligibility and allocation rules.

Keep the contract, invoice, proof of use, payment evidence, calculation, submitted PP36, payment confirmation and official receipt as one pack. Where the service supports both VAT and non-VAT activities, assess allocation rather than claiming the full amount automatically. Test the trail during a Thailand accounting health check.

Remitting VAT does not settle whether the same payment is subject to Thai withholding tax. Service fees, royalties, interest and other income categories can follow different domestic and treaty analysis. The VAT question focuses on the service and its use; withholding tax also considers the income character, recipient and applicable double-tax agreement.

Run the checks side by side and document each conclusion. Do not reduce the PP36 amount or skip a withholding form merely because the other tax was handled. Use the Thailand withholding tax guide to frame the second review and obtain specialist advice for uncertain cross-border contracts.

Add supplier residence, service type, place of use, VAT status, payment date, currency, PP36 conclusion and withholding-tax conclusion to the payment checklist. A recurring vendor should retain a documented baseline, but each new contract, user population or service bundle still needs review.

Contact our accounting team with the contract, invoice, supplier country, service description, Thai VAT status, intended payment date and explanation of where the service is used. We can turn the facts into a filing and evidence checklist before the payment month closes.