Are we obliged to give our tax id to a retailer who is asking for it?

[ubonr1971]

We have a small business and I purchased a small product from a company. I paid from my personal bank acc but the invoice they sent me is in our business name and address. We may or may not give this receipt to our accountant as VAT is duly paid. 

 

They have asked for our tax id for our business. I suppose I dont have a problem giving it, but since Ive never been asked for it, I do question whether or not Im obliged to give this. 

 

The last time I remember giving it was when we registered our staff on the social security scheme. I can understand this one but not when buying a small retail product....

[JoePai]

Maybe for Withholding Tax ? Have you asked them ?

[jkthai]

FWIW I lived in Greece for ten years and we had to give a tax number for all commercial purchases, seems like TL is heading down that way

[TobiasML]

Within business to business sales it is necessary that the buyer TAX-ID is written on the invoice. Otherwise the Tax department will not accept the invoice as tax deductible.

[ubonr1971]

51 minutes ago, TobiasML said:

Within business to business sales it is necessary that the buyer TAX-ID is written on the invoice. Otherwise the Tax department will not accept the invoice as tax deductible.

Thanks for the info. 

 

If we have not set up a company structure for our business does this still apply. i.e. if my wife is paying all tax via her personal name, does that rule apply?

 

thanks

[asiaexpat]

Tax department will not accept a receipt that is not a Tax receipt, which includes the recipients tax ID for personal tax refunds. One must usually ask for a Tax receipt at the time of purchase.

[timendres]

Thai VAT makes life "interesting" for businesses.

 

This is actually an effort to reduce tax cheating. Businesses have the VAT (Value Added Tax) and the WHT (Withholding Tax). When I invoice another company, I charge them the 7% VAT, but then deduct the 3% WHT. In other words, the company pays me only 4% tax. However, my company has to pay the government the full 7% VAT. Now I am out the 3% WHT. The only way I get that 3% back is if I provide the Tax Invoice to the government at the end of the year to get the 3% returned to me. Where does it come from? The company that I invoiced must also show their invoice to the government, and they must pay the 3% WHT tax to the government. All of this requires that both companies have a VAT Tax ID.

 

This is a royal PITA that generates a lot of extra paperwork and accounting man-hours. However, because I have the incentive to file the invoice with the government to get my 3% back, and that allows the government to cross check with the invoiced company, it encourages the paperwork necessary to stop tax cheating. The invoiced company gets the advantage of not paying the WHT until the end of the year, which also encourages them to do the dance.

 

In cases where the invoiced company does not have a Tax ID, then I must charge them the full 7% VAT up front. So I do not believe that you are required to provide a Tax ID, if you do not have one. However, if you do have a Tax ID, I believe it is mandatory to provide it and do the WHT dance, and businesses are very suspicious of companies that do not want to provide the ID. If they charge the full 7% VAT, then I think their ass is covered, and it is only an issue for you to explain why you are not following the prescribed process. Although, for small players, I doubt it would ever be an issue.

Edited November 29, 2018 by timendres
spelling

[Thaifish]

Maybe off topic but legally should a company disclose the 7% VAT up front when a customer is doing a purchase. I hate the smallest fine print hidden somewhere in a Menu or a beer Tab which jumps by 7% at the end of the night. The prices on the chalkboard enticing me inside never mention the tax...

[LukKrueng]

9 hours ago, timendres said:

Thai VAT makes life "interesting" for businesses.

 

This is actually an effort to reduce tax cheating. Businesses have the VAT (Value Added Tax) and the WHT (Withholding Tax). When I invoice another company, I charge them the 7% VAT, but then deduct the 3% WHT. In other words, the company pays me only 4% tax. However, my company has to pay the government the full 7% VAT. Now I am out the 3% WHT. The only way I get that 3% back is if I provide the Tax Invoice to the government at the end of the year to get the 3% returned to me. Where does it come from? The company that I invoiced must also show their invoice to the government, and they must pay the 3% WHT tax to the government. All of this requires that both companies have a VAT Tax ID.

 

This is a royal PITA that generates a lot of extra paperwork and accounting man-hours. However, because I have the incentive to file the invoice with the government to get my 3% back, and that allows the government to cross check with the invoiced company, it encourages the paperwork necessary to stop tax cheating. The invoiced company gets the advantage of not paying the WHT until the end of the year, which also encourages them to do the dance.

 

In cases where the invoiced company does not have a Tax ID, then I must charge them the full 7% VAT up front. So I do not believe that you are required to provide a Tax ID, if you do not have one. However, if you do have a Tax ID, I believe it is mandatory to provide it and do the WHT dance, and businesses are very suspicious of companies that do not want to provide the ID. If they charge the full 7% VAT, then I think their ass is covered, and it is only an issue for you to explain why you are not following the prescribed process. Although, for small players, I doubt it would ever be an issue.

I'm not sure, but I think the withholding tax had nothing to do with vat. When I operated a business in the past, whenever I purchased something for the business I gave the company's tax id to the seller who charged me the 7% vat which I could later deduct from my vat payments on sales I made. However whenever I the company received cash bonus or incentive for good performance a 3% withholding tax was deducted. At the end of the tax year, when filling all tax papers to pay company tax on profit (income tax), we deducted all the withholding tax of the year from the company's tax payment

[BestB]

Tax invoice requires tax id. If you do not want to give tax id , do not ask for tax invoice.