VAT relief extended for cryptocurrencies and utility tokens

On 6 February 2024 the Cabinet resolved to approve in principle a draft law to extend a VAT exemption for the sale of cryptocurrency and utility tokens through licensed digital exchanges, effective from 1 January 2024 onwards. A VAT exemption under Royal Decree No 744 issued under the Revenue Code for sales made through licensed digital exchanges expired on 31 December 2023.

The draft law also expands the VAT exemption to sales made through licensed brokers and dealers.

The draft law complements the existing VAT exemption under Royal Decree No 779 issued under the Revenue Code for the issuance and sale of investment tokens under the digital asset business laws.

Investment tokens are digital tokens issued with the objective of specifying the right of a person to participate in an investment in a project or business whilst a utility token grants rights to goods, services etc.

The VAT exemptions for digital assets are expected to increase Thailand’s ability to compete as a digital asset hub.