E-services tax expected to take effect next year

[rooster59]

E-services tax expected to take effect next year

By The Nation

 

Ekniti Nitithanprapas, the Revenue Department's director-general

 

E-services tax, or value-added tax, is likely to be levied next year on foreign digital platforms that do not have a subsidiary company in Thailand, and it is expected to generate Bt3 billion per year revenue to the state, the top Revenue Department official said.

 

 

Ekniti Nitithanprapas, the department's director-general, said the House of Representatives had approved the draft bill, adding that it was under consideration by the Senate committee.

 

"Once the e-services tax draft bill is approved by the Senate committee and the Constitutional Court, and is announced in the Royal Gazette, the act will be effective within 180 days, or in 2021," he said.

 

He explained that the e-services tax aimed to create a level playing field between foreign and domestic online business entrepreneurs, as foreign entrepreneurs who operate businesses in Thailand are required to register for value added tax.

The act will not be a burden on customers, he assured.

 

"However, the department expected that e-services tax collection will generate Bt3 billion revenue per year to the state," he said.

 

"This will enable the Revenue Department to achieve the revenue collection target in fiscal year 2021."

He added that in fiscal year 2020, the Revenue Department would not be anle to achieve its revenue collection target of Bt2.116 trillion.

 

"Revenue collection in the first nine months of this year is expected to be Bt1.26 trillion," he added.

 

Source: https://www.nationthailand.com/business/30393373

 

-- © Copyright The Nation Thailand 2020-08-23

 

- Whatever you're going through, the Samaritans are here for you

- Follow Thaivisa on LINE for breaking COVID-19 updates

[tonray]

Digital Nomads....run Forest run !

[Bender Rodriguez]

do they mean also tax things like iherb ?

 

you cannot find any good quality supplements in thailand...

 

I would not mind paying an extra 7 percent VAT, but I would hate to go near CW and pay tax there, every single time, ...I had to do once for a package valued at 100$...  

[Jack Mountain]

Legal theft.

[PETERTHEEATER]

Can someone, please, explain what impact this would have at consumer level?

[Leaver]

5 hours ago, rooster59 said:

He explained that the e-services tax aimed to create a level playing field between foreign and domestic online business entrepreneurs, as foreign entrepreneurs who operate businesses in Thailand are required to register for value added tax.

The act will not be a burden on customers, he assured.

Does he expect the entrepreneurs or companies to pay the VAT on behalf of the customers?  I don't think so.  The customer will be paying the VAT, so the cost, or "burden" will be passed onto the consumer.  That means higher prices.  

[ukrules]

8 hours ago, rooster59 said:

The act will not be a burden on customers, he assured.

Well I would expect prices will go up by some 10% and when anyone complains they will just say, blame the Thai taxman.

 

 

[Leaver]

20 minutes ago, ukrules said:

Well I would expect prices will go up by some 10% and when anyone complains they will just say, blame the Thai taxman.

 

 

We are seeing it in manufacturing in recent times, now E-services.  Thailand is slowly becoming uncompetitive in the region.  

 

When things aren't going well in Thailand, what happens, "Money go down. Put price up."  In this case, tax. 

[Pferdlkrantz]

On 8/23/2020 at 2:14 PM, PETERTHEEATER said:

Can someone, please, explain what impact this would have at consumer level?

The tax will be passed down the line to the consumer, naturally. 

[Leaver]

On 8/24/2020 at 3:41 PM, Pferdlkrantz said:

The tax will be passed down the line to the consumer, naturally. 

But the Director-General said, "The act will not be a burden on customers, he assured."  ????