Online sellers whose turnover exceeds 1.8 million baht a year must register for VAT, just like any other business. All sales revenue must be included in the income tax computation, and digital records of sales may also be used to substantiate income. How to aggregate turnover from several platforms to determine whether the registration threshold has been reached is explained in our guide to VAT registration (Thai).
Since 1 September 2021 (B.E. 2564), operators located outside Thailand that supply electronic services, and electronic platform operators — for example, film and music streaming services, applications, games, or online advertising space — have been liable to pay VAT in Thailand on services used in Thailand by customers who are not VAT registrants. The tax is computed on output tax, with no deduction of input tax, and is currently collected at a combined rate of 7%.
Online sellers should keep complete records of transactions from every marketplace platform, bank account statements, and sales data from their POS system or accounting software. Financial institutions and electronic payment service providers are required to report to the Revenue Department accounts whose deposits or incoming transfers reach the reporting threshold — namely 3,000 or more transactions a year, or 400 or more transactions with a total of 2 million baht or more a year — under the Revenue Code Amendment Act (No. 48) B.E. 2562 (2019).
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