Blog > Marketplace News > Due To The New Tax Policy, The Number of Shopee And Lazada Sellers In Thailand May Decrease By 10%
Due To The New Tax Policy, The Number of Shopee And Lazada Sellers In Thailand May Decrease By 10%
Jayson 08 Jan 2024 11:30
It is reported that the new regulations introduced by the Thai Taxation Bureau on December 27, 2023 will have a huge impact. One of them may cause sellers on platforms such as Shopee and Lazada to reduce by 10% and switch to social media channels such as Facebook, Instagram, and Line.
The new regulations require all Thai e-commerce platforms with revenue exceeding 1 billion baht in an account period to establish a "special account" to report the revenue of online sellers. This legislation will take effect on January 1, 2024.
"This announcement is a game changer for the e-commerce industry," said Kulthirath Pakawachkrilers, chairman of the Thailand E-commerce Association.
To avoid providing information about actual revenue, some stores may choose to close permanently or temporarily.
“This will prompt platforms to examine clues about the actual earnings of local and foreign sellers on their platforms, which could lead to a 10% drop in merchant numbers this year,” she said.
Ms Kulthirath added that online sellers with multiple sales channels may rely more on social commerce platforms such as Facebook, Instagram and Line as they may not be subject to the ministry's announcement.
Additionally, "some online sellers who decide to comply with tax rules may increase product prices to compensate for higher tax costs at the expense of consumers," she said.
The new regulations require all Thai e-commerce platforms with revenue exceeding 1 billion baht in an account period to establish a "special account" to report the revenue of online sellers. This legislation will take effect on January 1, 2024.
"This announcement is a game changer for the e-commerce industry," said Kulthirath Pakawachkrilers, chairman of the Thailand E-commerce Association.
To avoid providing information about actual revenue, some stores may choose to close permanently or temporarily.
“This will prompt platforms to examine clues about the actual earnings of local and foreign sellers on their platforms, which could lead to a 10% drop in merchant numbers this year,” she said.
Ms Kulthirath added that online sellers with multiple sales channels may rely more on social commerce platforms such as Facebook, Instagram and Line as they may not be subject to the ministry's announcement.
Additionally, "some online sellers who decide to comply with tax rules may increase product prices to compensate for higher tax costs at the expense of consumers," she said.
