Thailand approves VAT for foreign digital platforms

BANGKOK — The Cabinet has approved a draft bill that will levy VAT on international digital platforms, expecting the measure to net additional annual revenue of Bt3 billion ($96 million).

A Cabinet meeting on Tuesday (June 9) gave the green light to amend the Revenue Code to collect a value-added “E-Service” tax from foreign digital platforms that do not have a subsidiary company in Thailand. The draft was proposed by the Finance Ministry to collect revenue from overseas internet-based service providers in Thailand.

The spokesman said the new tax will not affect consumers. It will be levied on websites, applications, movies, music, games, and hotel reservations from international platforms that currently pay no VAT.