Thailand begins collecting of value-added tax (VAT) from foreign e-service operators
Thailand’s Finance Ministry says Thailand will enforce the e-service tax law, which collects value-added tax (VAT) from foreign e-service operators, from September 1st.
According to the Finance Ministry, e-services subject to this legislation include e-commerce platforms, online advertising, online accommodation booking, online music and film streaming, online games and applications. The 7% value-added tax will apply to businesses that earn more than 1.8 million baht in online sales annually.
Finance Minister ArkhomTermpittayapaisith said the law will create a level playing field between Thai operators and foreign e-service firms providing services in Thailand, as the latter is now obliged to pay VAT in line with the law.
He said some 50 foreign e-service operators have registered through a simplified VAT system for e-service (SVE), which enables them to register for VAT, file VAT returns and pay VAT electronically. The move is also expected to bring in 5 billion baht from foreign e-service providers through VAT collection in the 2022 fiscal year. (NNT)