Royal Decree on VAT exemption for data hosting services

Royal Decree No. 759 was published in the Government Gazette on 8 November 2022. It provides an exemption from VAT for data centres which provide the following services:

Keywords: Mazars, Thailand, Tax, Data hosting, VAT exemption

22 December 2022

  1. Providing server space and equipment used for storing, processing, and connecting electronic data through the internet; and
  2. Providing the following supporting services under point 1 above:
  3. Backup services to prevent damage to data;
  4. Connection services to an internet or cloud service provider; and
  5. System management services and information security services.

A data centre is eligible for the VAT exemption if it meets the following conditions:

  1. It is a company or partnership established under Thai law.
  2. It is a VAT registrant. 
  3. It files an application for the VAT exemption within 5 years of the day that Royal Decree No. 759 comes into effect (from 9 November 2022 to 8 November 2027).
  4. It is a data centre business operating under the law on investment incentives or the law on the enhancement of national competitiveness for targeted industries, or other laws as prescribed by the Director-General of the Revenue Department.
  5. It follows the procedures, methods, and conditions prescribed by the Director-General of the Revenue Department.    

The VAT exemption will be effective the day after the Director-General of the Revenue Department approves the application