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Amazon and Facebook Face Thai Tax Crackdown in Latest Backlash

  • Thailand stepping up efforts to ensure e-commerce VAT is paid
  • Tax also possible on Thai-sourced earnings by Internet giants
Operations At An Amazon.com Inc. Fulfillment Center During the ICON Conference
Photographer: Bess Adler/Bloomberg

Thailand is considering forcing online giants such as Amazon.com Inc. and Facebook Inc. to collect value-added tax on e-commerce sales, echoing an Indonesian clampdown on transactions that skirt the levy.

Cross-border purchases by Thais routed through global online marketplaces, as well as booming domestic sales in the so-called social-commerce sector, should incur the tax. But overseas vendors aren’t always aware of such obligations, and many Thais selling informally via social media avoid them.