Pay tax for online sale ? shopee and lazada will report you, but do you know anybody paying tax for selling online ?

[scoupeo]

hi, if you sell on shopee and lazada, they will report your income to tax office, the only way i guess to tax people, as independent online shops will never be taxed if they do not declare anything.

 

But I am wondering if many Thai pay tax for selling online ? I guess that there is a threshold ?

 

How much does a Thai need to sell or earn to be caught not paying tax for online sales ? any idea ?

 

do you know any Thai who has to pay tax for selling on market places ?

 

just wondering ????

 

 

 

 

[Matzzon]

Of course people that with a registered company sell on marketplaces have to pay tax. Private sellers also have to pay tax, but there is more who don´t because it´s easy to get away. Not anything that has to do with if they are Thai or not.

[sanmyintmaung]

Lazada withhold tax from the payment received and submit to Revenue department using the seller tax ID.

Seller can claim for refund from Revenue deaprtment at the end of the year qualify for deductions.

 

https://sellercenter.lazada.co.th/seller/helpcenter/ตัวอย่างการคำนวณค่าธรรมเนียมการขาย-commission-fee-และค่าธรรมเนียมการชำระเงิน-payment-fee-9738.html

 

However, direct sales to customer such as through facebook lives will not be visible to Tax man.

Edited August 20, 2020 by sanmyintmaung

[jackdd]

26 minutes ago, sanmyintmaung said:

Lazada withhold tax from the payment received and submit to Revenue department using the seller tax ID.

Seller can claim for refund from Revenue deaprtment at the end of the year qualify for deductions.

 

https://sellercenter.lazada.co.th/seller/helpcenter/ตัวอย่างการคำนวณค่าธรรมเนียมการขาย-commission-fee-และค่าธรรมเนียมการชำระเงิน-payment-fee-9738.html

 

However, direct sales to customer such as through facebook lives will not be visible to Tax man.

This is only about VAT collected by Lazada and about withholding tax.

It has nothing to do with VAT which the seller would have to forward to the revenue department and the seller's income tax, which make up a much higher percentage.

[yankee99]

Not sure where this is going. Every online sale we make collects Vat and tax is paid on profits 

[khunPer]

23 hours ago, scoupeo said:

But I am wondering if many Thai pay tax for selling online ? I guess that there is a threshold ?

From the news within the last year, 11 percent of the population are registered as income tax payers, and around 5 percent pays income tax.

 

In principle almost all income is taxable, but yes, there is a treshold, or rather several. You can find an income tax calculator here.

 

And you can read about Thai income tax here.

 

Registered companies will pay company tax.

 

 

 

Edited August 21, 2020 by khunPer

[SCOTT FITZGERSLD]

for you as a foreigner the main concern should not be the tax but

to get caught selling on line without a work permit; as it might

be considered work.

 

as for the thai tax man, i guess he is more flexible than in other counries, and will

make things easier. it all depands on the amounts involved. if the sales are in large

volume the tax authorities will take notice.

[exemplary21]

Lazada, etc do not deduct withholding tax from your sales.

They charge VAT on the fees they charge you, and that is shown on their monthly tax invoice.

 

If your total annual sales are over 1.8 million baht, you are supposed to register for VAT.

Once you register for VAT, you MUST do monthly returns. The penalties for non- or late submission can be onerous.

 

One way that the RD knows your sales figures is the mandatory reporting of the number and size of deposits to individual accounts by banks. They must also report agglomerated data, for example, on multiple accounts in the same name/ID number. Different accounts in the same name/ID number across multiple banks are agglomerated by the RD themselves.

 

I didn't know that Lazada, etc were subject to mandatory sales reporting to the RD. I will check on this with my RD source, perhaps tonight before we turn the light off...

[NightSky]

There was an announcement in the previous few years what the threshold for banks reporting you to the tax office was 2 million baht revenue per year or a certain number of transactions per month.

 

if serious about online selling to thai customers i would start to think how youre going to register a business in thailand to pay tax or pay tax in a thais name whos account is registered to (ie your wifes account)

 

tax was one of the main reasons for all the global crackdowns since 2017, beware big brother will be watching.

 

 

Edited August 21, 2020 by NightSky

[thailandroadblock]

most of them never pay income tax

[salsajapan]

On 8/21/2020 at 2:55 PM, NightSky said:

There was an announcement in the previous few years what the threshold for banks reporting you to the tax office was 2 million baht revenue per year or a certain number of transactions per month.

 

if serious about online selling to thai customers i would start to think how youre going to register a business in thailand to pay tax or pay tax in a thais name whos account is registered to (ie your wifes account)

 

tax was one of the main reasons for all the global crackdowns since 2017, beware big brother will be watching.

 

 

 

So you do not have any first hand experience and do not know any Thai earning a lot but not paying tax ?

I know at least 3 earning (profit) more than 100k / month, they only pay taxes when buying a new Benz or BM.

 

 

 

 

[salsajapan]

On 8/21/2020 at 12:38 PM, SCOTT FITZGERSLD said:

for you as a foreigner the main concern should not be the tax but

to get caught selling on line without a work permit; as it might

be considered work.

 

as for the thai tax man, i guess he is more flexible than in other counries, and will

make things easier. it all depands on the amounts involved. if the sales are in large

volume the tax authorities will take notice.

 

You guess a lot ! but at the end you still know nothing !

[salsajapan]

On 8/21/2020 at 1:32 PM, exemplary21 said:

Lazada, etc do not deduct withholding tax from your sales.

They charge VAT on the fees they charge you, and that is shown on their monthly tax invoice.

 

If your total annual sales are over 1.8 million baht, you are supposed to register for VAT.

Once you register for VAT, you MUST do monthly returns. The penalties for non- or late submission can be onerous.

 

One way that the RD knows your sales figures is the mandatory reporting of the number and size of deposits to individual accounts by banks. They must also report agglomerated data, for example, on multiple accounts in the same name/ID number. Different accounts in the same name/ID number across multiple banks are agglomerated by the RD themselves.

 

I didn't know that Lazada, etc were subject to mandatory sales reporting to the RD. I will check on this with my RD source, perhaps tonight before we turn the light off...

 

so do you think that the tax office targets are the people selling more than 1.8mb ?

 

 

 

 

[SePl]

Ridiculous to pay tax for online sale in Thailand when I never even paid it in Europe...

 

 

[thailandbeachisland]

yes, it's coming, I just read the news...