BANGKOK — The government on Wednesday proposed a tax on e-commerce businesses in Thailand that could see up to 3 billion baht per year in revenue.
Netflix, Youtube, Google, Facebook as well as other e-commerce services such as travel booking websites Agoda will be among those to be taxed if a proposed bill to charge them with value added tax is endorsed, director general of the Revenue Department Ekniti Nitithanprapas said.
“Prior to this, advertisements normally use television but now it is done through various platforms such as Facebook, Google, YouTube,” Ekniti said, adding that even overseas companies operating here will be slapped with the VAT.
The Cabinet approved the preliminary proposal on Tuesday and the matter will later be submitted to the Parliament for debate and possible approval.
The director general said charging VAT on e-commerce is a growing trend and over 60 nations including those in Southeast Asia.
He also said the tax plan will level the playing field for Thai businesses not operating online.