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Personal Income Tax Shopping Allowance in Thailand
09/01/2024
In an effort to stimulate domestic spending and promote the use of electronic invoices, the Thai government has introduced a personal income tax shopping allowance scheme known as the Easy E-Receipt program(1). This program allows individuals to claim a tax deduction of up to THB 50,000 for qualifying purchases of goods and services made between January 1, 2024, and February 15, 2024. By encouraging citizens to request electronic tax invoices or e-receipts, the government aims to boost the economy and incentivize businesses to transition to digital transactions.
Key points
- A tax deduction of up to THB 50,000 is available for qualifying purchases of goods and services.
- The purchase of eligible goods and services must be made between January 1 and February 15, 2024.
- Claimants of the tax deduction must obtain electronic tax invoices for purchases from VAT registered businesses or e-receipts for purchases from non-VAT registered sellers. Paper forms of tax invoices or receipts will not be accepted.
What is the Easy E-Receipt Program?
Under the Easy E-Receipt program, eligible individuals can receive a tax deduction of up to THB 50,000 for purchases made from business operators supported by the e-tax system. This tax deduction is applicable for a wide range of goods and services, with the exception of certain items such as alcoholic beverages, tobacco products, motor vehicles, petrol or gas for vehicles, and utility services.
To qualify for the tax deduction, individuals must ensure that the electronic tax invoices or e-receipts are issued for their purchases. These invoices or receipts should be obtained from VAT-registered businesses or non-VAT registered sellers, depending on the nature of the purchase. It is important to note that the tax deduction is only available for purchases made within the specified period and supported by electronic documentation.
What are the Eligible Purchases?
The Personal Income Tax Shopping Allowance covers a variety of goods and services, promoting consumer spending across different sectors of the economy. Eligible purchases under this program include:
Goods and Services from VAT Registered Businesses
Individuals can claim a tax deduction for purchases of goods and services from VAT registered businesses. However, certain categories of products and services are excluded from this tax deduction. These include:
- Alcoholic drinks
- Tobacco products
- Motor vehicles, motorcycles, and boats
- Petrol or gas for vehicles
- Utility services such as electricity, water, telephone, and internet
- Service fees under agreements extending beyond the specified period
- Non-life insurance premiums
Goods and Services from Non VAT Registered Sellers
Individuals can also claim a tax deduction for purchases made from non-VAT registered sellers. However, the eligible items are limited to:
- Books, newspapers, and magazines
- Electronic versions of books, newspapers, and magazines via the internet
- One Tambon One Product (OTOP) goods registered with the Department of Community Development
These eligible purchases from non-VAT registered sellers provide individuals with an opportunity to support local businesses and promote cultural products.
Are there any Rules or Conditions?
To ensure compliance with the tax regulations and benefit from the Personal Income Tax Shopping Allowance, individuals must adhere to certain rules and conditions. These include:
1) Receipt of Electronic Tax Invoices or E-Receipts
Claimants of the tax deduction must obtain electronic tax invoices for purchases from VAT registered businesses or e-receipts for purchases from non-VAT registered sellers. Paper forms of tax invoices or receipts will not be accepted.
2) Individual Natural Persons
The tax deduction is only applicable to individual natural persons. Ordinary companies and non-juristic bodies of persons are not eligible to claim this allowance.
3) Compliance with Additional Rules and Procedures
Individuals must comply with any additional rules, procedures, and conditions set forth by the Revenue Department. Failure to meet these requirements may result in the loss of the tax concession and potential penalties.
How can Belaws help?
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Frequently asked questions
What is the purpose of the Easy E-Receipt program introduced by the Thai government?
The Easy E-Receipt program aims to stimulate domestic spending and encourage the use of electronic invoices by offering individuals a personal income tax shopping allowance of up to THB 50,000 for qualifying purchases.
When can individuals claim the tax deduction under the Easy E-Receipt program?
Individuals can claim the tax deduction for qualifying purchases of goods and services made between January 1, 2024, and February 15, 2024.
What types of purchases are eligible for the Personal Income Tax Shopping Allowance in Thailand?
The Personal Income Tax Shopping Allowance covers a variety of goods and services, excluding certain items such as alcoholic beverages, tobacco products, motor vehicles, petrol or gas for vehicles, and utility services.
How can individuals qualify for the tax deduction under the Easy E-Receipt program?
To qualify for the tax deduction, individuals must ensure that they obtain electronic tax invoices or e-receipts for their purchases from either VAT-registered businesses or non-VAT registered sellers, depending on the nature of the purchase.
Are there any restrictions on the types of goods and services eligible for the tax deduction?
Yes, certain categories of products and services, such as alcoholic drinks, tobacco products, motor vehicles, and utility services, are excluded from the tax deduction. The eligibility varies for purchases from VAT-registered businesses and non-VAT registered sellers.
What are the rules and conditions individuals must adhere to for the Personal Income Tax Shopping Allowance?
Individuals must ensure they receive electronic tax invoices for purchases from VAT-registered businesses or e-receipts for purchases from non-VAT registered sellers. Additionally, the tax deduction is applicable only to individual natural persons, and compliance with any additional rules and procedures set by the Revenue Department is required.
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