Businesses and commerce are rapidly transforming into social networking on the internet. E-commerce becomes increasingly globalised. There are a variety of elements to take into account when transforming, such as SEO, analytics, payment processing, website design, social marketing, and customer management, for instance. Importantly, a number of laws are in effect for e-commerce. Therefore, e-commerce and digital law become important things to consider when running a business through the Internet and social networking, and consultation with a specialised e-commerce lawyer is needed.
According to Consumer Protection Act B.E. 2522 (1979), Section 22, business advertising (both online and offline) must not provide false statements, hate speech, unfair statements to consumers, or statements that may harm society or be against good morals (public policy). Whether statements relating to the origin, condition, quality, or nature of the goods or services, as well as delivering, procuring, or using goods or services
Above all, uploading to the internet false data or information that may harm a person may be sentenced to 5 years maximum imprisonment, a THB 100,000 fine, or both, according to the Computer Crime Act, B.E. 2550 (2007), Section 14–17, although the uploading is made abroad.
Automatic Exchange of Info (AEOI)
From January 1, 2022, Thai financial institutions will be required to collect and share financial account and tax information with the Thai Revenue Department in order to comply with the Automatic Exchange of Information (AEOI) requirements set by the Convention on Mutual Administrative Assistance in Tax Matters (MAAC). Read more
Electronic Data and E-Signature
Under the Electronic Transactions Act B.E. 2544 (2001), which aims at promoting the use of electronic transactions both domestically and internationally and establishes the legal equivalence of electronic records and signatures with paper writings and manually signed signatures, removing barriers to electronic commerce
This Act supports the law in a unified manner and in accordance with internationally accepted standards; all electronic transactions and electronic data are binding between the parties; electronic signatures are equal to handwritten signatures and legally enforceable in court, for instance.
E-Commerce Business Registration
According to the Announcement of the Ministry of Commerce (No. 11), B.E. 2553 (2010), all e-commerce operators, whether a natural person, an ordinary partnership, a company limited, or a public company, must register their business with the Department of Business Development (DBD). Registration of electronic commerce, including: (1) trade of goods or services through internet networks (2) Internet Service Provider (ISP) (3) Web Hosting. (4) e-Marketplace.
Notice and Takedown, and Safe Harbor
Relevant to online infringement of intellectual property, to protect the copyright’s owner. For the liability exception of online infringement by an internet user, some ISPs must comply with the copyright law of Thailand, the Amendment Act 2022, which structures the ‘notice and takedown’ rule. The ISPs must work together with the copyright owner when online infringement occurs. Also, the ‘safe harbour” rule, under which ISPs must provide the policy, notify the infringement, and take down the infringement without delay. Read more.
Specialized Business License for e-Commerce
Some businesses need a special licence, e.g., tourism businesses, which require another licence issued by the Department of Tourism under Tourism and Tour Guide Business B.E. 2551 (2008); direct selling businesses, both single-level marketing (SLM) and multi-level marketing (MLM), which require another licence issued by the Board of Consumer Protection under the Direct Selling and Direct Marketing Law, BE 2545; etc.
In practice, the DBD will not accept the e-commerce business registration until you have a specialised business licence.
VAT on Non-Resident Electronic Service Providers
The Revenue Code Amendment Act (No. 53) B.E. 2564 (2021) stipulates that non-resident service providers and electronic platforms with income from providing electronic services to non-VAT registered customers in Thailand of more than 1.8 million baht per year are required to register for VAT, file VAT returns, and remit VAT to the Revenue Department under a pay-only basis without deducting input tax or issuing a tax invoice.
Non-resident electronic service providers must take these issues into account when conducting e-commerce. Read more
e-Commerce Legal Basic in Conclusion
Technology moves fast, and we are all transforming our lifestyles from offline to online. In Thailand, it may be a problem for some of the baby boomer generation, but some of them are doing online shopping through their smartphones. It’s possible that soon drone delivery will be available at their home. If you have any questions about e-commerce’s legal basics, just feel free to contact us at any time.
NEWS: BOI offers 50% corporate income tax exemption for 3 years to the Digital industry below. Read more
Tag: e-commerce legal basic
1. Intermediary ISP who provides the transmission, networks and infrastructure. 2. Caching ISP who caching infringing activities. 3. Hosting ISP who provides computer data storage. 4. Search engines that link to infringing activities.