Tax Compliance in the Digital Age: What E-Commerce Businesses Need to Know

Thailand’s e-commerce is booming. With platforms like Shopee, Lazada, and Tiktok, over 3 million people are now selling online. On top of that, the digital workforce has grown to around 9 million — 7 million of whom are freelancers. Even the influencer and content creator industry is making a big impact, adding about 45 billion Baht to the economy each year and growing fast.

But with this rapid growth comes a challenge: tax compliance. Many online sellers and digital workers still don’t file income tax returns, even if they’re earning well. The Thai Revenue Department is cracking down on this. They’ve warned that they can review your records from the past five years and issue penalties if you’re not following the rules.

Let’s help you fully understand what taxes you need to pay, how to remain compliant and how to keep your business growing safely.

Your Tax Responsibilities as an E-Commerce Seller in Thailand

The taxes you need to pay depend on how your business is set up, how much you earn, and the kind of work you do.

Personal Income Tax

If you are working as an individual (not through a company), your online earnings are subject to Personal Income Tax. Thailand uses two ways to calculate this tax and applies whichever results in the higher amount.

1. Progressive Tax Rates

You’re taxed based on how much you earn:

0 – 150,000 Baht	0%
150,001 – 300,000 Baht	5%
300,001 – 500,000 Baht	10%
500,001 – 750,000 Baht	15%
750,001 – 1,000,000 Baht	20%
1,000,001 – 2,000,000 Baht	25%
2,000,001 – 5,000,000 Baht	30%
Over 5,000,000 Baht	35%

1. Flat Tax Rate
   1. Income up to 120,000 Baht – 0%
   2. Income over 120,000 Baht: taxed at 0.5%

You will need to file two tax forms.

1. Mid-year return (Form Por Nor Dor. 94): July to September
2. Annual return (Form Por Nor Dor. 90): January to March of the next year

Tip: Many sellers wrongly think they don’t need to file taxes if they earn below certain limits. But the Thai Revenue Department now expects all digital income earners to file, no matter how much they make.

Corporate Income Tax

If your e-commerce business is registered as a company or partnership, you’ll pay Corporate Income Tax.

• Rate is 20% of your net profit
• Form to file is Por Nor Dor. 51 (every six months)
• Keep accurate financial records and apply eligible business deductions

Should you register as a company?

As your business grows, switching to a corporate setup can offer benefits like better tax planning and liability protection.

Value-Added Tax (VAT)

Once your total annual revenue goes over 1.8 million Baht, you must register for VAT.

• • Registration: Within 30 days after crossing the threshold
  • Where: Local Revenue Office or online

• Rate: Charge 7% VAT on your sales

• Returns: Submit monthly VAT filings by the 15th of the following month

• Include income from all platforms—Shopee, Lazada, TikTok, etc., when calculating your total revenue

Many sellers miss this and only consider income from individual platforms. Don’t make that mistake!

What Counts as Taxable Income?

The Thai Revenue Department expects you to report all your digital income, including:

1. Sales from your own website
2. Commissions from platforms
3. Affiliate marketing income
4. Paid sponsorships and influencer deals

Even income from foreign platforms or international clients may be taxed if you’re a Thai resident. These cases can be tricky so consider speaking with a tax professional.

Possible New Taxes

Thailand is watching how other countries are taxing digital services. A Digital Services Tax (DST), like the 3% tax used in some European nations, might be introduced in the future.

This could affect online ads, platform services, and user data. Stay updated as these changes could affect how much tax your business needs to pay.

How the Department is Cracking Down E-Commerce Businesses

The Revenue Department, as mentioned earlier, can review your business records from up to five years ago. So even if you have only recently formalised your operations, past transactions could still be audited, especially since digital platforms keep a clear record of sales.

How They Find You

They now use a variety of tools to check for non-compliance. Examples are:

1. Data from Shopee, Lazada, TikTok, and other platforms
2. Social media monitoring for influencers
3. Bank account activity and cash flow analysis
4. Reports from payment apps and digital wallets
5. Tips from competitors or former business partners

Red Flags That Trigger an Audit

• Living a lavish lifestyle but reporting little to no income
• Large cash deposits without matching tax filings
• High sales volumes with poor or no documentation
• Skipping VAT registration despite high revenue
• Anonymous tips or complaints

What Happens If You Don’t Comply?

You may face the following penalties and legal risks if you turn a blind eye to intentional non-compliance.

1. Monthly late-filing penalties
2. Interest on unpaid taxes
3. Heavy fines for international tax evasion
4. VAT penalties, including back payments
5. Criminal charges for severe violations
6. Frozen bank accounts
7. Public exposure of violations
8. Trouble renewing business licenses and permits
9. Potential shutdown of your business

Compliance Tips For You

Your business needs good systems in place for tracking income, expenses, and tax obligations.

Keep your records in order, all your sales reports from all platforms, even receipts for inventory, shipping, ads and platform fees. Don’t forget your bank statements, e-wallet transaction logs, and inventory lists and purchase records.

Some tips that we can provide in terms of organisation are:

• Store records in the cloud with clear folder names
• Reconcile platform earnings with your bank deposits monthly
• Use separate folders for each year and sales channel
• Sync your online stores with accounting software if possible

Keep records for at least five years to match the Revenue Department’s audit window.

Use the right financial tools.

You will greatly benefit from accounting software to import sales data, track expenses/profit in real time, get tax reports and save time during tax season.

For banking,

1. Use a separate business bank account
2. Put all expenses on a business credit card
3. Match payouts from platforms to your bank deposits
4. Avoid mixing personal and business money

If you sell on multiple platforms,

1. Track all your sales in one dashboard. Make it unified.
2. Keep the pricing consistent.
3. Manage returns and customer service efficiently.
4. Prepare consolidated reports for taxes.

Know When to Get Help

Hire or engage the expertise of tax professionals if you have the following conditions. They will serve as your “go” indicator if it’s time to outsource tax compliance.

• You are close to the VAT threshold
• You sell on multiple platforms
• You’re earning from international sources
• You have been contacted by the Revenue Department
• You want to register your business officially

You should look for someone who understands platform fees and how they affect taxes, VAT rules for online sellers, income from affiliate marketing and content creation, international tax issues, and who is updated with current enforcement trends.

What’s Next for Digital Taxes in Thailand?

The tax environment is rapidly evolving, so now is the time to stay ahead of upcoming changes. Here is what’s on the horizon and how it might impact you.

Big Legal Changes Are Coming

Big news for international investors and local e-commerce operators! Changes to Thailand’s Foreign Business Act are set to make doing business easier.

Foreign ownership caps (currently 49%) may be raised in the digital and e-commerce sectors. That means easier access to international funding and partnerships.

The complex and slow Foreign Business License process will be streamlined.

New laws will reduce the use of nominee shareholders and improve legal clarity.

Is a Digital Services Tax Coming?

Thailand doesn’t yet have a Digital Services Tax (DST) but it’s under serious discussion. The government is monitoring how Europe, ASEAN, and the OECD are handling this. If it is introduced, it could apply to:

• Ads on digital platforms
• Marketplace commissions
• Selling customer data
• Online service revenues

So what should you do? Stay prepared. The answer is always preparation. If you make money through platforms like TikTok, Facebook Ads, or run a digital agency, this could affect your bottom line soon.

Economic Pressures Driving Reforms

Thailand’s government needs more revenue—and fast. Why?

Its GDP growth for 2025 has been downgraded from 3% to 2.1%.

U.S. tariffs on Thai goods are creating pressure to boost domestic digital activity.

In short, expect faster rollout of digital tax reforms as the government seeks new ways to fund public services.

Bottom Line

Compliance is no longer optional. With over 3 million sellers and a fast-growing creator economy, the Thai Revenue Department is no longer turning a blind eye to digital income.

You need to take tax compliance seriously. Do it with help from an accounting services firm like Reliance Consulting for guidance on tax registration, compliance, and planning.