VAT IN THAILAND


Value Added Tax (‘VAT’) is a tax on the sale of goods or the provision of services. The current rates are 7% and 0% with some exemptions from VAT.

17 May 2017

 

VAT paid (‘input VAT’) is offset against the VAT charged on sales (‘output VAT’). Should input VAT exceed output VAT then a refund can be claimed from the Revenue Department. This is either in cash or as a credit against future output VAT.

 

A tax payer that has only zero-rated income will have the option to reclaim the input VAT.

Registration process

 

Registration requires the submission of the VAT 01 form before commencing business or within 30 days after income exceeds the threshold of at least 1.8m Baht per annum.

Tax invoice

 

The invoice (including debit and credit notes issued with reference to such invoices) must, as a minimum, contain at least the following:

 

  • The words “tax invoice” in a prominent place;
  • The name, address and taxpayer identification number of the VAT registrant issuing the tax invoice;
  • The name and address of the purchaser of the goods or service;
  • Serial number of tax invoice;
  • Description, type, category, quantity and value of goods or services;
  • The amount of VAT calculated on the value of goods or services clearly separated from the value of goods or services; 
  • The date of issuance;
  • Tax identification number of the purchaser of the goods or services;
  • The wording “Head Office” or “Branch No. …” which is the seller’s place of business from which such tax invoice, debit or credit note is issued; and
  • The wording “Head Office” or “Branch No. ….” which is the purchaser’s place of business to which such goods or services are sold or provided.

 

Invoices raised in currencies other than Thai Baht require the presentation of both currencies on the face of the invoice and must indicate the exchange rate used in the conversion. It is the amount in Thai Baht which is reported to the Revenue Department.

Provision of services

 

Generally, an invoice is issued to request for payment of the service and then a tax invoice is issued on receipt of payment, which is the tax point for VAT purposes.

Imports and exports

 

The export of both goods and services rendered in Thailand but wholly consumed overseas have a VAT rate of 0%.

When importing goods, VAT is due and payable to the Customs Department during the import process.

When payments are made overseas for services provided, this would be regarded as an import of services and VAT would apply on a reverse charge basis. Accordingly the recipient of the service would be required to make a voluntary payment to the Revenue Department along with the filing of VAT return form PP 36.

Rates

 

Some common VAT rates and exemptions:


TYPE OF GOODS

VAT RATES

General Thai rate

Imported services or goods

Exported services or goods

Sales of services or goods to state-owned entities or government

Sales of goods from companies located in Free Trade Zones

7%

7%

0%

0%

0%


Submission to the Revenue Department


The VAT returns, known as a PP 36 and a PP 30, are submitted to the Revenue Department (‘RD’) on or before the 7th and 15th day respectively of the following month in which the payment was made and the tax invoice was raised. E.g. a tax invoice dated 25th July 2017 will be included on the VAT return submitted to the RD by the 15th August 2017.


The Revenue Department has announced that companies registered for e-filing have an extra eight days to file all tax returns. This incentive will run until 31 January 2019.


  • PP 36 to be filed on or before 15th of the month
  • PP 30 to be filed on or before 23rd of the month

Late submission


The fine for late submission is:


  • 300 baht within the first 7 days
  • 500 baht after 7 days


The penalty for late submission is up to twice the amount of tax due that month. There is also a surcharge of 1.5 percent of the tax payable per month.

Further sources of information


Revenue Department website:

http://www.rd.go.th/publish/6043.0.html

http://www.rd.go.th/publish/37718.0.html


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Value Added Tax (‘VAT’) is a tax on the sale of goods or the provision of services. The current rates are 7% and 0% with some exemptions from VAT.