Thailand Integrates Online Sales into VAT System; New Measures Announced

[snoop1130]

 

Thailand’s Ministry of Finance will incorporate online sales platforms into the country's tax umbrella, per a recent Cabinet decision. This mandate requires these platforms to register for value-added tax (VAT), effectively capturing digital transactions within the tax net.

 

The Ministry’s anonymous source confirmed that the Revenue Department would amend the Revenue Code to reflect this decision. Online platforms will now need to register for VAT and could also face personal and corporate income taxes. This new requirement gives the Revenue Department access to transaction data from these platforms.

 

In a related move, the Cabinet extinguished the VAT exemption for imported goods valued below 1,500 baht (US$44), effective from July 5. This change aims to ensure tax fairness between imported and locally produced goods, particularly benefiting small and medium-sized enterprises in Thailand.

 

 

 

 

This isn’t Thailand’s first step toward tightening tax regulations on digital services. Previously, in 2021, the Revenue Department began collecting VAT from foreign online platforms offering electronic services (VES) in the country, ensuring that all businesses pay fair VAT.

 

The measures target a spectrum of foreign online services, from e-commerce and streaming platforms to transport and travel services. The 2021 e-service law required foreign providers earning over 1.8 million baht (US$53,000) annually from non-VAT-registered users in Thailand to enroll in the VES system.

 

Finally, the Cabinet has endorsed swift actions against illegal sales of foreign goods, involving customs duty, corporate income tax, VAT, anti-dumping tax, and measures to control import surges. These steps ensure that both foreign and domestic businesses operate on a level playing field.

 

File photo for reference only

 

-- 2024-09-05

 

 

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[hotchilli]

12 hours ago, snoop1130 said:

Finally, the Cabinet has endorsed swift actions against illegal sales of foreign goods, involving customs duty, corporate income tax, VAT, anti-dumping tax, and measures to control import surges. These steps ensure that both foreign and domestic businesses operate on a level playing field.

Talking of a level playing field, will Thailand be dropping the "luxury tax" soon on my favourite tipple?

[AhFarangJa]

12 hours ago, snoop1130 said:

ensuring that all businesses pay fair VAT.

Fair Tax, now there is the oxymoron for the day.

[Drumbuie]

It's odd that the people who complain about paying taxes are usually the same ones who complain about the services which are paid for by taxes. 

[john donson]

I am sure the many stall sellers send the 7% vat to the right authority... or do they come in brown envelopes?

[stoutfella]

4 hours ago, john donson said:

I am sure the many stall sellers send the 7% vat to the right authority... or do they come in brown envelopes?

No, in buckets like elephants do.

[redwood1]

4 hours ago, john donson said:

I am sure the many stall sellers send the 7% vat to the right authority... or do they come in brown envelopes?

 

I bet most of the non food stall seller get their stuff straight from China.....Thai manufacturing is a drop in the bucket next to China...

 

 China may very well give these taxes a big....LOL

 

[Guderian]

23 hours ago, snoop1130 said:

In a related move, the Cabinet extinguished the VAT exemption for imported goods valued below 1,500 baht (US$44), effective from July 5. T

 

This was months ago already. Has anyone actually seen a comment on Lazada or Shopee saying that Thai VAT has been included for a cheap purchase from Big Brother? I haven't noticed anything.

[Dogmatix]

They can force Lazada and Shopee to add VAT to stuff ordered from their Thai websites but shipped from China but I don't see how they can do that to overseas vendors, such as Aliexpress and Temu.  They said somewhere they will have to register a presence in Thailand too but there again, I don't see how to force that.  Thailand doesn't have extraterritorial jurisdiction in China.  All it could do to enforce this, if foreign vendors don't comply, is to ask the foreign government to pass a law obliging firms to register for VAT in Thailand, if they export there.  They still have the ability to tax the goods when they arrive in Thailand but that would involve opening everything to check whether VAT charged or not.