The Revenue Department showcases e-Service tax collection, pushing revenue for the first 6 months past the target of 14%, or 101,695 million baht.
Dr. Ekniti Nitithanpraphas The Director-General of the Revenue Department revealed that, according to the Revenue Department, the VAT for Electronic Service (VES) platform has been issued to customers in Thailand since September 1, 2021 at past that At present, there are 127 foreign service providers platforms registered for VES, with total electronic service value of 60,874.98 million baht, equivalent to 6-month cumulative VAT collection (October 2021 – March 2022), totaling 4,261.25 million baht. It is expected that throughout the fiscal year 2022, the Revenue Department will collect VES close to ten billion baht. Which is higher than the expected target of about 5,000 million baht. The VAT for Electronic Service (VES) law that applies to platforms and service providers abroad. From September 1, 2021 onwards, with the objective of creating fair value added tax collection for Thai entrepreneurs. Currently, there are platforms and foreign service providers that provide electronic services, such as online advertising services, online sales services (E-Commerce), subscription platform services such as watching movies, listening to music, playing games (Subscription), intermediary platform services. such as transport services (Peer to Peer) and hotel booking platforms, travel tickets (Online Travel Agency) that provide services to retail customers (Not VAT registered) in Thailand
This e-Service Tax Law came into force on September 1, 2021, requiring foreign operators to provide electronic services to users who are not registered for VAT. In Thailand, with service income exceeding 1.8 million baht, VAT must be registered via the VES (VAT for Electronic Service) system on the website of the Revenue Department.
This e-Service tax helps create fair competition between Thai entrepreneurs and foreign platform providers. In the past, Thai entrepreneurs who do online service businesses and earn more than 1.8 million baht must register and pay VAT. On the other hand, foreign operators that offer the same online services do not require registration and are subject to VAT. In addition to this tax that will create fair competition, e-Service tax is another way of increasing income for Thailand. In addition, e-Service tax collection will help Thailand to have a database of income of the people. Provide international platform That can be used to calculate a new tax base that will be another source of income for Thailand in the future as well.
The collection of e-Service tax, which is a new type of tax. It is part that allows the Revenue Department to collect revenue for the first half of the fiscal year (October 2021 – March 2022) that exceeds the target of 101,695 million baht, or 14 percent, but the other part comes from other tools such as data. analytics, which has been fully implemented in recent times. This allows the Revenue Department to identify potential branch groups more and more targeted.
