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Thailand has approved a draft legislation that would impose 7% Value Added Tax (VAT) on foreign digital companies. All non-resident digital companies or platforms that earn more than 1.8 million Baht (US$57 434.59) per year on digital services in the country will have to pay a 7% VAT on sales. To become enforceable, the draft bill will have to be approved by the Thai parliament.
Last month, Indonesia passed a law requiring big Internet companies to pay VAT on the sales of digital products and services from July, and in the Philippines, a similar bill to tax digital services was introduced in parliament.
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