The digital realm is becoming an increasingly prevalent space to conduct business by selling products and services on the internet, which is now commonly referred to as “e-commerce.” E-commerce covers a wide range of transactions including B2B (Business to Business), B2C (Business to Consumer) and B2G (Business to Government). Amidst the pandemic and with a growing focus on digitalization, the Thai Board of Investment (BOI) is currently promoting e-commerce businesses and offering several non-tax benefits to BOI promoted companies.
In Thailand, businesses that operate one or more websites for the sale of their goods or services must have an e-commerce license. Applications for the license can be submitted once the website is completed and operational. The required details to be submitted with the application include:
✓ Name of the website
✓ Nature of the goods and services being sold on the website
✓ The date on which the website started operating
✓ Method of payment for purchases from the website
✓ Document evidencing the domain name registration or certification document from the service provider
The license can be obtained quite quickly but it is integral that the website be completed. This means that the payment process should be ready for sale and use and the products are clearly displayed and detailed on the website. The application must be submitted within 30 days of the start of operation of the website and should be submitted at the district office of the company address or city hall (within Bangkok) or the local administration office (outside of Bangkok).
The e-commerce license does not require a renewal.
Electronic Transaction Act
E-commerce business is now legally recognized under the Electronics Transaction Act (ETA) which enables the furtherance of electronic technology in businesses which provide electronic services and offer electronic transactions. The ETA’s purpose is to enhance the use of electronic technology while reducing the uncertainty of the legal effect of electronic transactions and outlining the requirements around conducting these transactions. The ETA provides a framework for electronic transactions to operate within and creates licensing and registration requirements for operators engaged in electronic transactions. The Electronic Transactions Commission oversees the implementation of the ETA and helps to promote businesses providing electronic transaction services and monitors the operations of those businesses.
Mahanakorn Partners Group can provide businesses with more information about conducting e-commerce and assist with licensing applications.