Taxation on Online Advertising Payments in Thailand: A 2025 Guide
As digital advertising continues to thrive in Thailand, understanding the tax implications of online advertising payments is crucial for businesses. This guide provides an overview of the current tax landscape, focusing on Value Added Tax (VAT) and Withholding Tax (WHT) applicable to online advertising services.
Table of Contents
Value Added Tax (VAT) on Online Advertising
Domestic Advertising Services
Businesses registered for VAT in Thailand are required to charge a 7% VAT on advertising services provided within the country. This VAT is collected from clients and remitted to the Thai Revenue Department through monthly filings.
Foreign Advertising Services
For advertising services procured from foreign providers, such as Google Ads or Facebook Ads, the tax treatment depends on the nature of the service and the provider’s presence in Thailand:Tax News+1Forvis Mazars+1
Use of Services in Thailand: If the advertising service is utilized in Thailand, it is considered as a service used in the country.
VAT Remittance: Thai businesses are responsible for remitting 7% VAT on the payment made to the foreign provider using Form Por.Por.36. This is applicable even if the foreign provider does not have a physical presence in Thailand.PwC Tax Summaries+11Forvis Mazars+11Royal Decree+11Tax News
Foreign Provider VAT Registration: Since September 1, 2021, foreign digital service providers earning over THB 1.8 million annually from non-VAT registered customers in Thailand are required to register for VAT under the Simplified VAT System for e-Service (SVE). These providers must collect and remit 7% VAT on their services.
Withholding Tax (WHT) on Online Advertising Payments
Domestic Providers
Payments made to Thai advertising service providers are subject to a 2% WHT. The paying company must deduct this amount from the payment and remit it to the Thai Revenue Department.
Foreign Providers
For payments to foreign advertising service providers without a permanent establishment in Thailand:
No WHT Obligation: Thai companies are generally not required to withhold tax on payments for advertising services provided by foreign entities without a taxable presence in Thailand.
VAT Responsibility: Despite the absence of WHT, Thai businesses must still handle the VAT obligations as outlined above.
Navigating the taxation landscape for online advertising in Thailand requires a clear understanding of VAT and WHT obligations. While domestic transactions are relatively straightforward, cross-border services necessitate careful attention to VAT remittance and compliance with local regulations. Businesses should stay informed about tax laws and consider consulting with tax professionals to ensure full compliance.
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