In Thailand certain law have been enacted regulating e-Commerce and effect change in business. When doing online business. In addition to the general law such as sex toy, vape or E-cigarette are not allowed for sale, there will be certain law to be complies with, such as consumer protection, electronic transaction, automatic tax information exchange, copyright. This article provides the relevant legal basic to e-Commerce which all e-Commerce business owners should know.
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 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 which may harm a person may be sentenced to 5 years maximum imprisonment, or THB 100,000 fine maximum 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 the 1st January 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, which 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 with hand writings, legally enforceable in Court of law, for instance.
E-Commerce Business Registration
According to the Announcement of the Ministry of Commerce (No. 11) B.E. 2553 (2010). All e-commerces operators, whether a natural person, ordinary partnership, company limited, or 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 liability exception of online infringement by an internet user, Some ISPs1 must comply with Copyright law of Thailand, the Amendment Act 2022 which structure the ‘notice and takedown’ rule, the ISPs must work together with the copyrights’ owner when online infringement. Also the ‘safe harbor’ rule which ISPs must provide the policy, notification about the infringement and takedown the infringement without delay. Read more.
Specialized Business License
Some business need a special license e.g. tourism business which required another license issued by the Department of Tourism under Tourism and Tour Guide Business B.E. 2551(2008), Direct Sell business both Single level marketing (SLM) and (Multi-Level Marketing (MLM) which required another license issues 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 before you have a specialized business license.
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, filing 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 provider must take this issues into account when performing e-commerce. Read more
Technology moves fast, we all are transforming our lifestyle from offline into online. In Thailand, it may be a problem for some baby boomer generation but some of them are doing online shopping through their smartphone. Possible, soon drone delivery will be live at their home. If you have any question about e-Commerce law of Thailand, visit e-Commerce page, we are always up-to-date knowledges when the law change, or feel free to contact us at any time.
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.