Thailand Online Seller Tax Calculator

Tax by annual sales (60% flat expense)

Selling online in Thailand is taxed quite differently from a salary, and each difference is real money. You may deduct a flat 60% of sales as expenses with no documentation at all — but there is also a minimum-tax method of 0.5% of gross sales hiding in the law, which catches high-turnover, thin-margin shops off guard. And at 1.8 million baht of sales, VAT registration becomes mandatory within 30 days.

This page runs both calculation methods and compares them automatically, exactly as the law requires, and warns as sales approach the VAT threshold. Every rate is taken directly from the Revenue Department.

Online selling is category 8 income under the Revenue Code, with a choice of two expense treatments: a flat 60% of sales with no evidence required, or actual expenses with complete documentation.

Which to choose is simple: if your total costs — goods, shipping, platform fees, advertising, packaging — run below 60% of sales, take the flat rate. It deducts more and requires no paperwork. Only if real costs exceed 60% is the actual method worth the documentation burden.

Two calculation methods, and you pay the higher. Method 1 is the ordinary progressive calculation: sales minus expenses minus allowances, taxed at 5% to 35%. Method 2 applies once income other than salary reaches 120,000 baht: multiply gross sales by 0.5% with no deductions whatsoever. If method 2 comes to 5,000 baht or less, it is waived.

Method 2 is the trap for high-turnover, thin-margin sellers. A shop with 3 million baht of sales that deducts actual expenses down to near-zero taxable income might owe next to nothing under method 1 — but method 2 makes it 15,000 baht, and that is what is due, because it is higher. Actual-expense deduction cannot help here, since method 2 is computed before any deduction.

The 1.8 million baht VAT line is a separate matter entirely. Once sales — not profit — exceed 1.8 million baht in a year, VAT registration is required within 30 days. Registration means charging 7% (or absorbing it), issuing tax invoices, and filing monthly.

The Revenue Department can see account inflows. Banks and e-wallets must report accounts with 3,000 or more deposits/incoming transfers a year, or 400 or more totalling 2 million baht, per institution. This is a reporting threshold, not a tax threshold — staying under it does not remove the duty to file. But it means frequent incoming transfers with no return filed is visible to the system.

Filing happens twice a year: PND 94 for January–June income, filed July to September, then PND 90 for the whole year by the following March. Mid-year tax is credited at year end.

For foreign sellers: the rules above apply to individuals selling in Thailand regardless of nationality — a work permit question is separate from a tax question. Selling into Thailand from abroad, or through a company, is outside this page.