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.
