Online vendors may soon have to pay taxes

[webfact]

Online vendors may soon have to pay taxes

By The Nation

 

Photo from: www.thaismescenter.com

 

THE REVENUE Department will be able to cast a wider net over online vendors and other businesses that have been evading taxes once the National Legislative Assembly (NLA) approves amendments to the Revenue Code.

 

The amendment, which won 139 nods from the 240-member NLA, will require banks and other financial institutions to report money transfers worth more than Bt2 million per recipient per year to tax authorities. 

 

Deputy Finance Minister Wisut Srisuphan said the amendments will help the Revenue Department collect taxes for goods and services sold online, as sellers have been evading tax payment due to the use of electronic money transfers.

 

According to the amended Revenue Code, banks have to report transfers totalling more than 400 transactions and worth over Bt2 million per year per recipient to the Revenue Department so authorities can investigate to see if these vendors paid taxes properly.

 

The Revenue Department had found it difficult to levy income and other taxes on e-commerce sites and online vendors due to a lack of information. 

 

Most online vendors are individuals with no physical outlets, who sell their products via social and digital platforms. Buyers generally transfer money for the goods via banks’ electronic payment service, so authorities cannot foll ow up on tax collection.

 

Wisut said the amendments will make tax collection more efficient and help bring small and medium-sized enterprises into the tax system, as many of them are also relying on social and e-commerce platforms.

 

According to the Revenue Department’s data, Thailand has 10.7 million citizens aged 30-39, of which 8.2 million are salaried workers, while the rest are self-employed. However, a large number of the self-employed do not pay taxes. 

 

Thailand also has some 640,000 enterprises registered as juristic persons, of which only about 420,000 have filed tax returns. 

The amended Revenue Code will help the authorities collect taxes from this sector too. 

 

However, some NLA members voiced opposition to the amendments, citing potential negative effects on other people, including NLA members who themselves receive their meeting allowances via bank transfers.

 

Voraphol Sokatiyanuluk, an NLA member, said there were already other laws that empowered the Revenue Department to investigate tax evaders, so this amendment was unnecessary. 

 

Also, he said, this requirement will put an additional burden on financial institutions, as they will have to report transactions to the authorities.

 

He too cited NLA members among those who will be affected by the amendments, since many receive hundreds of bank transfers every year, including meeting allowances, and they pay their taxes properly. 

 

Another NLA member, Tuang Anthachai, pointed out that many donations for Buddhist temples are transferred via people’s bank accounts, so organisers will face problems due to these amendments. 

 

In response to some of the concerns, the amendment was changed to 400 transactions per recipient per year instead of 200 as proposed earlier. 

 

Source: http://www.nationmultimedia.com/detail/business/30359862

 

-- © Copyright The Nation 2018-12-05

[Khun Paul]

While they are about that, tax all these so-called temporary market stall holders who make a business selling at these markets. evading all statutory laws and guidelines, including the market organisers which make money off organising said markets. Which are lowering the incomes of legal and well run businesses.

[pehice]

hahaha the most funny news of the days.

Even in EU they can tax nothing if you are a bit smart, so how the idiots here can expect to tax online sellers hahahaha...

 

 

[NightSky]

1 hour ago, pehice said:

hahaha the most funny news of the days.

Even in EU they can tax nothing if you are a bit smart, so how the idiots here can expect to tax online sellers hahahaha...

 

 

Because there is such as thing as shared information between banks, governments and all financial institutions and large private online marketplaces (CRS and FATCA)

 

If you accept Bitcoin even it has to be exchanged one day unless your landlord and local store also accepts Bitcoin and even then that will be eventually taxed too at the source of every single transaction. Not long now.

 

I agree government tax departments are known for scare tactics but this time I feel that something is going to enable governments to back up those threats, i.e. technology.

 

Also in the EU they are closing the loop holes so as you put it you really will need to be more than 'a bit smart'.

 

Seller beware.

[khunPer]

1 hour ago, pehice said:

hahaha the most funny news of the days.

Even in EU they can tax nothing if you are a bit smart, so how the idiots here can expect to tax online sellers hahahaha...

The article says...

Quote

According to the amended Revenue Code, banks have to report transfers totalling more than 400 transactions and worth over Bt2 million per year per recipient to the Revenue Department so authorities can investigate to see if these vendors paid taxes properly.

 

[Syduan]

3 hours ago, Khun Paul said:

While they are about that, tax all these so-called temporary market stall holders who make a business selling at these markets. evading all statutory laws and guidelines, including the market organisers which make money off organising said markets. Which are lowering the incomes of legal and well run businesses.

Yeah, tax them all, better still bring back slave labour.

 

[NoshowJones]

4 hours ago, pehice said:

hahaha the most funny news of the days.

Even in EU they can tax nothing if you are a bit smart, so how the idiots here can expect to tax online sellers hahahaha...

 

 

I know, the online sellers can get income letters from their Embassies.

[Bluespunk]

5 hours ago, Syduan said:

Yeah, tax them all, better still bring back slave labour.

 

A bit of a hyperbole comparison don't you think.

[Cadbury]

When they get the system up and running, which they won't, then they could perhaps get  themselves organised enough to tax corruption. That should bring in a fortune!