Foreign businesses providing online services in Thailand will now have to register for the 7% value-added tax (VAT) liability starting September 1 if their annual income exceeds 1.8 million baht, says a Revenue Department official.
The e-service tax has been approved by parliament and published in the Royal Gazette.
E-service businesses liable for the VAT payment include those offering download services for movies, games, stickers, brokerage services and ads, the Revenue official added.
E-service platforms such as Apple, Google, Facebook, Netflix, Line, YouTube and TikTok, having annual income exceeding 1.8 million baht, are liable for VAT payment, said the source.
Revenue Director General Ekniti Nitithanprapas the new tax requirement would somehow benefit Thai entrepreneurs who already have been paying the levy.
The e-service tax is expected to generate revenue of 5 billion baht in the first year after it takes effect, said Mr Ekniti.
Original writer: Wichit Chantanusornsiri
Source: Bangkok Post
