7 Dec 2017
THAILAND: All E-Commerce Transactions Involving Overseas Retailers to be Subject to 7% VAT
All e-commerce transactions in Thailand, including those made from overseas retailers, are set to be subject to 7% VAT. At present, online purchases from retailers registered outside the country are exempt from VAT if they are valued at less than Baht 1,500 (US$46).
The change is expected to be implemented once proposed amendments to the country’s e-Transactions Law are enacted sometime in early 2018. Among other proposed changes is the imposition of a withholding tax (WHT) of up to 15% on all online transactions conducted in Thailand, including those involving overseas operators.
Overseas e-commerce companies with a permanent presence in Thailand, however, will not be liable to pay WHT and instead their Thailand-based income including from online sales will be subject to 20% corporate income tax. For details, see THAILAND: Tax to be Levied on All E-Commerce Transactions Deemed to be Within Thai Jurisdiction.