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Accounting & Secretary
VAT Registration in Thailand
Any person or company that supplies goods or provides services in Thailand with an annual turnover exceeding THB 1.8 million is subject to VAT.
It is important for any company who reaches the VAT threshold to register for VAT and satisfy the requirements to stay fully compliant with the Revenue Code. Failure to do so could result in the penalties being imposed upon the company.
How does VAT works in Thailand?
Value Added Tax (VAT) registration is mandatory for any company who has a gross income of THB 300,000 or more in a single month or THB 1,800,000 or more per year.
Companies who import goods, sell goods or supply services in Thailand must register for the payment of VAT. A service is deemed to be provided in Thailand if the service is performed in Thailand. It does not matter where the service is executed or if it is used somewhere outside of Thailand. It is important to note that some types of services are VAT exempt and there are others that are zero-rated. Businesses that are not required to register for VAT may still do so voluntarily if they wish.
The current VAT rate in Thailand is set at 7 percent.
Pricing
FROM
THB 9,000 *
+ 7% VAT
5 Business days
(Average time from the moment we receive
all the required information from you)
All VAT Registrations are handled by a Tax expertScope of work
- Prepare and submit all the VAT registration documents required for registration. This includes collecting and collating information about the company such as the business registration certificate, signatures for the directors, proof of company headquarters and others.
- Answering questions in relation to the process.
- Advise on post registration compliance.
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What is the process for registering for VAT in thailand?
Be prepared for obtaining your BOI Licence with our comprehensive and free registration checklist.
Be prepared for obtaining your BOI Licence with our comprehensive and free registration checklist.
Collecting documents and completing the application
Our team of experts will collect, collate and fill in all the required documents, ready for your signature.
TIMELINE
2 days collecting documents from client. 2 days preparing the required documents and arrange for signing documents.
Registration process
Our team of experts will file all the VAT registration documents and application forms with the Area Revenue department.
TIMELINE
Can be completed within 1 day once we receive complete required documents from client
Post-registration requirements
Our team of experts can help you with your company’s bookkeeping, auditing and payroll needs.
TIMELINE
2 to 3 weeks to open a bank account. 2 weeks to obtain a work permit
Frequently asked questions
What activities are exempt from VAT?
The following activities are exempted from VAT:
-
- Small entrepreneurs whose annual turnover is less than THB 1.8 million
- Sales and imports of unprocessed agricultural products and related goods, such as fertilisers, animal feeds and pesticides
- Sales and imports of newspapers, magazines and textbooks
- Certain basic transactions, such as:
Transportation: domestic and international transportation by way of land
Healthcare services provided by the government and private hospitals as well as clinics
Educational services provided by the government and private schools and other recognised educational institutions
Professional services: medical and auditing services, lawyer services in court and other similar professional services that have laws regulating such professions
Income from business, commerce, agriculture, industry, transport or any other activities not specified above
Cultural services, such as amateur sports, services of libraries, museums and zoos
Services in the nature of employment of labour, research and technical services and services of public entrepreneurs
Goods exempted from import duties under the Industrial Estate law imported into an Export Processing Zone (EPZ) and under chapter 4 of the Customs Tariff Act
Imported goods that are kept under the supervision of the Customs Department which will be re-exported and be entitled to a refund for import duties
Other services, such as religious and charitable services, services of government agencies and local authorities
What activities have a VAT rate of 0%?
The VAT rate of 0% applies to the following activities:
- Export of goods
- Services rendered in Thailand and consumed outside Thailand in accordance with the rules, procedures and conditions prescribed by the Director-General
- International transport services by aircraft or sea-going vessels
- Sales of goods and services to Thai government ministries, departments or state enterprises under foreign loan assistance programs
- Sales of goods and services to international organisations that Thailand is obliged under agreements with organisations to treat like embassies
- Sales of goods and services to foreign economic and trade offices that are established in Thailand under agreements with foreign governments
- Sales of goods or services between bonded warehouses and businesses located in export processing zones or duty-free zones.
Can I claim VAT refunds?
Refunds can be claimed for VAT if the input tax exceeds the output tax each month. The refund will be issued as cash or tax credits which can be used in the following months.
If the taxpayer is eligible for zero-rated VAT, they will always be entitled to claim the VAT back.
What are the penalties for non-compliance?
Section 90 of the Revenue Code states that the punishments for individuals who fail to meet the VAT requirements include:
A fine of not more than THB 2,000 when the VAT registrant fails to:
- File a tax return
- Notify any changes in particulars of the VAT registration
- Notify a change of place of business
- Notify temporary business cessation
- Issue certified copy of tax invoice, credit note or debit note
A fine of not more than THB 5,000 when the VAT registrant fails to:
- Display the certificate of VAT registration
- Notify the opening of additional place of business or the closing of the place of business
- Notify the transfer of part of the business or the receive of transfer of business
- Notify the cessation of business or transfer of business
A fine or not more than THB 10,000, a sentence for not more than one month or both:
- Any businessperson liable to register for VAT carrying on business without VAT registration
- VAT registrant fails to issue a tax invoice or its copy or fails to provide the tax invoice or its copy to the purchaser or service recipient
- A businessperson registered for temporary VAT registration issuing tax invoice not in accordance with the rule, procedure and conditions as prescribed by the Director-General
- An agent issuing tax invoice on behalf of VAT registrant not in accordance with the rules, procedures and conditions as prescribed by the Director-General
A fine or not more than THB 10,000, a sentence for not more than six months or both:
- An agent of a VAT registrant residing abroad issuing tax invoice without approval
- VAT registrant using a cash register machine without approval
- VAT registrant fails to make reports on output tax, input tax and goods and raw materials (in the case that the VAT registrant conducts business on the sale of goods) or as prescribed by the Director-General
A fine of THB 2,000 to THB 200,000 and a sentence from three months to seven years:
- VAT registrant intends to evade or tries to evade VAT, issuing tax invoice, debit note, or credit note without authorisation
- VAT registrant intends to or tries to evade VAT fails to issue a tax invoice, debit note, or credit note or their substitute
- VAT registrant intends to or tries to evade VAT acts falsely, fraudulently or by similar nature.
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