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Posted

I have been running a export business in Hua Hin for 17 years, and always had some issues with the revenue department in Prachuapkirikhan who issue the VAT claims in this province. Years before they could hold off the payments for a few months and come and check my papers etc. But I always got the money that I claim. Because I export 99% of my manufactured products I claim all 7% VAT of the raw material etc. that I purchase. There was a new director starting at the revenue department in November, thats when the payments stopped being issued. Some other foreign owners of other manufacturing/export businesses that I have spoken to have the same problem, but Thai owners that I have spoken to seem's to have no problem's at all.

I got my lawyer/accountant to speak with the new director and others at the revenue department to try to find out what is going on, and she got the message from them that if I claim my VAT back, they will start a investigation on my company.

In my 22 years in Thailand I always felt the discrimination the Thai gives you when you are doing business here, But right now it is worse than ever. I kind of feel I want to give up doing business here and just sell off the land, machines etc. and call it a day, but I have 40 staff that I am very found off, and they have all been loyal to me and most of them have worked with me for more than 15 years. I would hate to see them in the unemployment line as they have families to support.

Anybody know what the heck is going on at the revenue department these days? someone with more inside info ?

Posted

Ouch!

 

Is this about brown envelopes and corruption, Revenue office targets or a dislike of farangs I wonder, it would be interesting to know.

 

A few possibilities: if the message that came back was genuine, and you perhaps ought to try and confirm that via an independent source, no amount of running a business properly will prevent an investigation from finding something wrong and that something might cost you a lot of money, even seeking help from a higher level might not avoid that investigation by the local office.

 

I can't help with constructive advice but as a past small business owner I can offer my support and understanding, hopefully, somebody better connected and more knowledgeable will come along with some useful advice.

 

 

Posted

Contact the ombudsman either directly or if worried have your  lawyer do so.  Might be worth speaking with the other people affected and do it together. 

  • Like 2
Posted
6 hours ago, simoh1490 said:

Ouch!

 

Is this about brown envelopes and corruption, Revenue office targets or a dislike of farangs I wonder, it would be interesting to know.

 

A few possibilities: if the message that came back was genuine, and you perhaps ought to try and confirm that via an independent source, no amount of running a business properly will prevent an investigation from finding something wrong and that something might cost you a lot of money, even seeking help from a higher level might not avoid that investigation by the local office.

 

I can't help with constructive advice but as a past small business owner I can offer my support and understanding, hopefully, somebody better connected and more knowledgeable will come along with some useful advice.

 

 

I have never given money to any officials before, and probably would not start now unless they force my hand. I am pretty sure I have my papers in order and I don't fear they find anything. Someone told me today that the revenue department is running out of money, witch sounds odd.

Thanks for you comment though.

  • Like 2
Posted
5 hours ago, timewilltell said:

This scam has been going on for years in various areas as they try to hit their targets. It is the foreigners they go after first and reason, law or logic are no assistance. It is out and out racism as is prevelant through the structure of Thailand. It is easier not to do business here to be honest. I have no intention of doing so again.

Yes, it's my last business here as well. Just not possible to do things easy anymore. Not worth it.

Posted
7 minutes ago, ukrules said:

How about reporting them to the superiors in Bangkok

Yes, as the commenter above mentioned, maybe I contact the ombudsman, first to get to know the laws etc. and if the revenue department is breaking any by holding off the payments. I have heard that they can hold the payments for 60 days without giving notice (I have not gotten any since November) just to get it confirmed.

Posted

I have to say that in Bangkok, if you request a VAT refund then it's almost certain you will be visited. The level of investigation will depend on the amount being reclaimed. It doesn't matter if your company and directors are all Thai citizens - a refund triggers an investigation.

Posted
1 hour ago, blackcab said:

I have to say that in Bangkok, if you request a VAT refund then it's almost certain you will be visited. The level of investigation will depend on the amount being reclaimed. It doesn't matter if your company and directors are all Thai citizens - a refund triggers an investigation.

That is mental, with all the export businesses there. Probably 1 million + in reclaimed VAT for a small/medium size exporter a month, I doubt anyone would let that go away easily. I would not 

Posted

Thailand is for relaxing, not for trying to do business in 

I learned that lesson fairly quick and now I wouldn't even attempt it because its not worth the stress and hassle

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