The new e-services tax, a VAT of 7%, came into effect yesterday (Sept 1).
According to the Finance Ministry, e-services subject to the new tax include e-commerce platforms, online advertising, online accommodation booking, online music and film streaming, online games and applications, reports state news agency NNT.
The 7% VAT will apply to businesses that earn more than B1.8 million in online sales annually, the report noted.
Finance Minister Arkhom Termpittayapaisith said the tax 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 B5 billion from foreign e-service providers through VAT collection in the 2022 fiscal year.