More people choose to start a business adventure on the Internet by managing their eCommerce but still lack of knowledge about what it means to have an e-commerce store and the duties and obligations that it implies at the level of tax for online shop [ภาษี ออนไลน์ which is the term in Thai]
The first thing we should know when opening an online store is in which tax regime we must register. In this regard, we only have to worry about meeting the essential requirements to opt for the equivalence surcharge.
After registering, the Administration will assign us the Economic Activity Tax code that corresponds to the appropriate category. This will mark the taxes we will have to pay. It is quite easy just like when you want to Change facebook name [เปลี่ยนชื่อเฟส which is the term in Thai], although there are several options, the most common is that this type of business fits within the “retail, mail or catalog.”
VAT in eCommerce
According to the VAT that is applied to the products we sell, the treasury determines the percentage that we will have to pay for an equivalence surcharge. In addition, of course, the corresponding VAT will also have to be paid. Keep in mind that this may slightly increase the price of the product so that the business is profitable for us.
If we do not opt for the equivalence surcharge, the tax system becomes the quarterly VAT payment to the Treasury.
VAT Peculiarities
When it comes to VAT, it is important to keep in mind that eCommerce can make many sales outside our country. Therefore, the various possible transaction scenarios will have to be assessed. To know whether or not to apply the tax will depend on where it is understood that the operation is performed.
