Thailand: VAT exemption granted to promote data center businesses

A VAT exemption measure for data center business operators

A VAT exemption measure for data center business operators

The Thai Cabinet approved a value added tax (VAT) exemption measure for data center business operators effective 9 November 2022.

As a result of the exemption, income derived from providing the following data center-related services are exempt from VAT:

  • Provision of server space and related devices for use in data storage and data processing as well as electronic data connections via internet network
  • Provision of the following services to support those services
    • Data back-up services for prevention of problems that may cause data damages
    • Network connection services for internet or cloud service providers
    • System management and information technology security services

In order to receive the VAT exemption, data center operators must submit an application to the Director-General of the Thai Revenue Department (TRD) within five years of the 9 November 2022 effective date.

KPMG observation

Operators who wish to submit an application must also meet the following qualifications: 

  • Be a company or juristic partnership established under Thai law
  • Be a VAT registrant
  • Granted with a promotion in data center business under the investment promotion law or the law governing the enhancement of national competitiveness for targeted industries, or other laws as prescribed by the Director-General of the TRD
  • Comply with procedures, methods and conditions prescribed by the Director-General of the TRD

The list is not definitive as the Director-General of the TRD is allowed to prescribe additional procedures and conditions for data center operators compliance.

Read a November 2022 report prepared by the KPMG member firm in Thailand


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