Does Shopee in Thailand need to pay VAT? What are the requirements for joining Shopee?

In our country, whether you open a store on an e-commerce platform or a physical store, you actually need to pay taxes. The same is true for cross-border e-commerce platforms. As long as they meet the standards, they need to pay taxes. So does Thailand's Shopee need to pay VAT? Let us explain this to you below.

Shopee in Thailand needs to pay VAT. VAT is a problem that cross-border e-commerce will inevitably encounter. VAT refers to value-added tax. The collection and collection rates of VAT on different national sites are different. The current tax rates are about 20%.

VAT is a post-sale value-added tax generally levied by EU countries, which is equivalent to the profit tax on the sales price of goods. If a cross-border e-commerce seller is doing business in the European market, he needs to register a local VAT tax number. After applying for the tax number, the seller needs to file a tax return according to the actual sales amount and the legal time. General taxpayers: VAT = output tax (sales tax) - input tax (import tax); small-scale taxpayers: VAT = sales * interest rate.

What are the requirements for joining Shopee?

1. Business license of the company in Mainland China.

2. A color copy of both sides of the legal person’s ID card. The legal person’s ID card cannot be expired and must be within the validity period.

3. Provide links to stores currently operated by the legal person on other e-commerce platforms, such as eBay, Amazon, Lazada, etc.

4. Newly registered sellers must also provide screenshots of orders from a store on other platforms within ninety days. The screenshots must reflect the total number of orders from the store and must be authentic.

5. Sellers must also provide the platform with a domestic return address, which must be indicated in Chinese.

6. Provide the legal person’s real mobile phone number and email address. If false information is provided, it may affect the seller’s registration review and the opening of other sites.

In addition, Shopee targets Chinese sellers and does not accept individual registrations like the other six sites. Only sellers with corporate qualifications can register.

However, the Taiwan site does accept individual businesses from mainland China, and other entry conditions are consistent with other sites. It is worth mentioning that Shopee currently has many preferential policies for sellers who are new to the platform, and exemption from platform commission is one of them.

To join Shopee, you need to meet the above conditions. After successfully joining, once Shopee's sales reach a certain standard, you need to pay VAT. As a merchant, you must comply and pay it in time! Finally, I hope this article can help you!