The Board of Investment has added data center businesses to the list of promoted industries eligible for value-added tax exemption.
Vat exemption for Data center business
On November 8, 2022, the Gazette published a royal decree issued pursuant to the Revenue Code on VAT Exemption (No. 759) B.E. 2565 on VAT exemption for data center operators with the following details:
This VAT exemption is for :
- provision of server space and related equipment for storage and processing and connect electronic information via the Internet
- 2. provision of support services for the provision of services under (1) as follows:
(a) provision of backup services to prevent failures causing data damage;
(b) providing network connection services to Internet Service Providers or Cloud Service Providers; or
(c) system management and information security services
Qualification and conditions
- being a company or juristic partnership established under Thai law
- being a VAT registrant
- being a promoted operator in data center business under the law on investment promotion or the law on increasing national competitiveness for the targeted industries; or other laws prescribed by the Director-General
- comply with the rules, procedures and conditions prescribed by the Director-General. (No relevant announcements have been issued yet.)
Submission period for VAT exemption
A Business operator shall submit an application for VAT exemption to the Director-General within 5 years after the effective date of this Royal Degree
Topics 2
On November 30, 2022, the Board of Investment issued the Board of Investment’s Announcement no. Sor 6/2565 (2022) on the amendment of the list of the type of business that provides investment promotion in accordance with the Notification of the Board of Investment No. 2/2014, which announced the addition of the following businesses in sections 1-7 of annexed to the Board of Investment Announcement No. 2/2557
The following activities are added in Sections 1-7 of the list annexed to the Board of Investment Announcement No. 2/2557 dated December 3, 2014, specifying types, conditions, rights and benefits as follows:
List 1 Agriculture and agricultural products
| Type of business |
rights and benefits |
| 1.27 Energy crops planting business |
A1 |
| 1.28 Organic starch or organic Flour production business |
A2 |
| 1.29 Native starch or Native Flour Business |
A4 |
| 1.30 The future of food production Business |
|
| 1.30.1 Food production businesses with health claims |
A2 |
| 1.30.2 New food production business (Novel Food) |
A2 |
| 1.30.3 Organic food production business |
A2 |
| 1.31 Production of therapeutic food for pets |
A2 |
| 1.32 modern agricultural service business |
A4 |
| 1.33 Biochemicals products manufacturing business |
A2 |
List 2 Minerals, Ceramics and Basic Metals
| Type of business |
Rights and benefits |
| 2.18 Mining, mineral dressing, smelting and mineral metallurgy under the target potential |
|
| 2.18.1 Target Potential Mining Business |
A2 |
| 2.8.2 2 Mineral dressing business following the mining of the targeted potential in the same project |
A2 |
| 2.18.3 smelting business and/or continual metallurgy operations from mining and mineral dressing for the targeted potential in the same project |
A2 |
| 2.18.4 mineral dressing business smelting or metallurgy target potential minerals |
A3 |
| 2.19 Cement manufacturing business |
B1 |
List 3 Light Industry
| Type of business |
Rights and benefits |
| 3.10.3 Lens manufacturing business with a continuous forming process due to glass melting in the same project. |
A3 |
| 3.11.4 Manufacturing of medical equipment parts |
A4 |
List 4 Metal Products Machinery & Transportation Equipment
| Type of business |
Rights and benefits |
| 4.11.7 Business of production of maintenance equipment and ground support equipment |
A3,A4 |
| 4.11.8 Manufacture of mechanical parts and/or electronic parts for satellites or space objects |
A2 |
| 4.11.9 Businesses designing and developing systems or software related to satellites and ground stations |
A1 |
| 4.11.10 launching services or launch mission control systems |
A1 |
| 4.11.11 Aerospace support business |
A2 |
| 4.29 Manufacture of fuel cell electric vehicles (FCEV) and fuel cell system equipment |
|
| 4.29.1 1 Manufacture of fuel cell electric vehicles (Fuel Cell Electric Vehicles: FCEV) |
A2 |
| 4.29.2 |
A2 |
List 5 Electrical and electronic appliances industry
| Type of business |
Rights and benefits |
| 5.4.12.5 High Density Interconnect Circuit Board Manufacturing Company |
A2 |
List 6 Chemicals, plastics and paper
| Type of business |
Rights and benefits |
| 6.20 Hydrogen production business |
|
| 6.20.1 Hydrogen production from water using renewable energy, including continuous production of products such as Green Ammonia, etc. |
A1 |
| 6.20.2 2 Hydrogen production from hydrocarbons or fossil fuels |
A2 |
List 7 Service and public utilities business
| Type of business |
Rights and benefits |
| 7.1.1.5 Electric power production business or electricity and steam from hydrogen business |
A2 |
| 7.39 Battery Swapping station Business |
A3 |