Company A carried on the business of providing virtual office space by renting a floor in a building and dividing this space into several units, then renting each unit to be used as virtual office.
Keywords: Mazars, Thailand, Tax, VAT, Revenue Department
18 November 2013
A client who wants to use the virtual office has to pay a monthly membership fee. The client can use the office units for an hour per day but not exceeding 24 hours per month. The client was also provided with services such as a telephone line, reception and private secretary, etc. Company A consulted with the Revenue Department whether its clients can use the address of the virtual office to apply for a VAT registration.
The Revenue Department ruled that since the use of a virtual office, according to the facts mentioned above and also that Company A did not specify a timetable for the use of space for each client and did not separately identify the possession of space by each client, it cannot be deemed that the clients had the virtual office as their business establishment. Therefore, the clients can not register for VAT registration.