Thai Revenue Department denies charging VAT on vaccines bought by private hospitals

[webfact]

(Photo by Joseph Prezioso / AFP)

 

The Revenue Department has dismissed, as groundless, a report widely circulated on social media that it is charging value-added tax (VAT) on COVID-19 vaccines being procured by private hospitals, through the Government Pharmaceutical Organization, and that the tax burden will be passed on to members of the public.

 

The department chief, Mr. Ekniti Nitithanprapas, said today that the report has caused widespread misunderstanding among the public, adding that all private hospitals have been exempted from VAT charges and, therefore, cannot pass the tax burden onto their clients.

 

Businesses registered for VAT system can seek a VAT refund if they are charged VAT on their purchases.

 

Source: https://www.thaipbsworld.com/thai-revenue-department-denies-charging-vat-on-vaccines-bought-by-private-hospitals/

 

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[ThailandRyan]

Denials and deflections mean the opposite in this country unfortunately. Prior stories have shown it was to be charged as well as import fees and government charges added, why else would it cost 3800 baht for 2 jabs of Moderna as charged to those who prepaid..... or maybe it's all being given free,  like in many places and countries in the rest of the world.

[internationalism]

as the only now imported and used by private hospitals can be sinopharm, charged 888b per dose, most probably it's not taxed, as the published price for dose is some $60. Looks, like this on is done at cost, on non-profit bases.

 

moderna is contracted for $34 which is 1020b and will be taxed at 11% (as I remember figure correctly, was published around 20th of May) by Anutin. On top of it other charges (hospital, doctor consultation, nurse, materials and 100b insurance), that's why they are going to charge 3400-3800b

[colinneil]

2 hours ago, webfact said:

The department chief, Mr. Ekniti Nitithanprapas, said today that the report has caused widespread misunderstanding among the public,

Always a misunderstanding, anytime someone in government here says its a misunderstanding you know he is b####hitting.

[herfiehandbag]

Denied it - they're doing it then.

 

Of course, quite where the 7% "skim" ends up may well be another matter...

[TheFishman1]

Thailand and his government always trying to figure out a way to make more money off peoples problems TIT corruption At best it’s just a misunderstanding

[4MyEgo]

3 hours ago, ThailandRyan said:

Denials and deflections mean the opposite in this country unfortunately. Prior stories have shown it was to be charged as well as import fees and government charges added, why else would it cost 3800 baht for 2 jabs of Moderna as charged to those who prepaid..... or maybe it's all being given free,  like in many places and countries in the rest of the world.

We got a call yesterday confirming our shots will be administered in October and they requested our account details to refund us 400 baht on each shot, down from 3,800 baht to 3,400 baht.

 

What that is all about, might have something to do with the VAT being taken out ?

[mtls2005]

This of course begs the obvious question has VAT actually been charged, at any point, on any vaccines (except for the donated ones)?

 

My guess would be, YES.

 

But with this regime who knows.

 

Maybe G2G (Sinovac) is excluded?

 

Sinopharm probably got an exclusion.

 

 

Not much transparency obviously.

 

Best never to follow the money, the bulk of which ends up in one place.

 

 

[ThailandRyan]

4 minutes ago, 4MyEgo said:

We got a call yesterday confirming our shots will be administered in October and they requested our account details to refund us 400 baht on each shot, down from 3,800 baht to 3,400 baht.

 

What that is all about, might have something to do with the VAT being taken out ?

That 7% would have been 266 baht, so maybe a reduction in another charge as well, maybe the customs charge, who knows.  I have tried to register the GF here at BNH but they are not taking any reservations yet.

[Khun Yogi]

48 minutes ago, 4MyEgo said:

We got a call yesterday confirming our shots will be administered in October and they requested our account details to refund us 400 baht on each shot, down from 3,800 baht to 3,400 baht.

 

What that is all about, might have something to do with the VAT being taken out ?

The Govt announced last week that the MAX price was B3300.????

[khunjeff]

4 minutes ago, Khun Yogi said:

53 minutes ago, 4MyEgo said:

We got a call yesterday confirming our shots will be administered in October and they requested our account details to refund us 400 baht on each shot, down from 3,800 baht to 3,400 baht.

 

What that is all about, might have something to do with the VAT being taken out ?

Expand  

The Govt announced last week that the MAX price was B3300.????

Correct. The proposed price kept jumping around from 3400 to 3800 and even higher, before someone pointed out that private hospitals are not permitted to charge a markup of over 50% on medicines procured from the GPO - so they lowered the price to 3300, which is exactly 50% higher than the GPO price. 

[4MyEgo]

50 minutes ago, ThailandRyan said:

That 7% would have been 266 baht, so maybe a reduction in another charge as well, maybe the customs charge, who knows.  I have tried to register the GF here at BNH but they are not taking any reservations yet.

Walk ins are the way to go in my opinion, that said, good luck.

[4MyEgo]

13 minutes ago, Khun Yogi said:

The Govt announced last week that the MAX price was B3300.????

3,300 or 3,400, 3,800 or 10,000 we need it, it's never been about risk vs benefit, it's always been profit = benefit, either way, I would pay the latter as my life could depend on it.

[ThailandRyan]

11 minutes ago, 4MyEgo said:

Walk ins are the way to go in my opinion, that said, good luck.

I agree, if only she could, but she is well under the age and has no medical conditions and is not Thai, so the deck is stacked.  Does not matter that she has a Salon, that is now closed, as she does not work in one of the jobs classified as necessary......BNH has not received a time for when to expect the Pfizer or Moderna and therefore are not taking pre-paid reservations as of yet like many other hospitals.  She has no problem wanting to get a vaccine and paying for it, she is stressed that she can not get into a que, and she just will not take the Sinovac that her relatives had and ended up hospitalized with two of her aunts on ventilators.

[Nanaplaza666]

25 minutes ago, Khun Yogi said:

The Govt announced last week that the MAX price was B3300.????

Yep , i just registered 3 days ago for me and the missus and paid 6600baht for 4 shots of Moderna . Ofcourse i will believe it when i recieve them but it is refundable.

[rwill]

VAT but changed to AT.  Now no VAT on it.

[bradiston]

1 hour ago, 4MyEgo said:

We got a call yesterday confirming our shots will be administered in October and they requested our account details to refund us 400 baht on each shot, down from 3,800 baht to 3,400 baht.

 

What that is all about, might have something to do with the VAT being taken out ?

Which hospital please? I have a prepaid booking also. Paid 1200 with a 700 fee to be paid at the time of jabbing. I think they have reduced the price because it was lowered across the board maybe by the PHA.

[4MyEgo]

Just now, bradiston said:

Which hospital please? I have a prepaid booking also. Paid 1200 with a 700 fee to be paid at the time of jabbing. I think they have reduced the price because it was lowered across the board maybe by the PHA.

Bangkok Hospital, you should get a call from their accounts department in due course, if you don't, when the time comes for the shot, bring it to their attention.

[mtls2005]

No clue if this waiver/exemption is still in place?

 

Assume "prevention" includes vaccines, but one can never be sure here.

 

Or what the reference to "donated" means?

 

Maybe the original Thai version is more definitive, but I could drive a lorry (not filled with vaccines) through the holes in that paragraph.

 

Upon a moment of reflection, my read on this is that there is no VAT (paid by the government to the government) on free vaccines. Paid private vaccines? My guess is that VAT must be paid. Who pays? No clue? Maybe the GPO passes through from TPHA/hospitals. Will customers be charged a 7% VAT line item on an invoice? No. It will be buried in the cost/price, COGS.

 

 

https://www.rd.go.th/fileadmin/user_upload/news/englishnews26_2563.pdf

 

News No. : 26/2020
Date : 31
st March 2020
Subject : VAT exemption for importation of medicines, medical supplies, medical tools
 In order to be donated against COVID-19
.................................................................................................................... .............................................................
 The Cabinet of Thailand approved a tax measure on VAT exemption for the
importation of medicines, medical supplies, medical tools against COVID-19. The aforesaid
items have to be used for medical treatment, medical diagnosis or COVID-19 prevention
namely, medicines, medical supplies and medical tools against COVID-19 donated to
government hospitals, public sectors and organization or public charity in the light of medical
treatment, medical diagnosis or COVID-19 prevention for medical staff and related persons
being in charge of COVID-19 combat. 

Edited July 12, 2021 by mtls2005

[bradiston]

1 minute ago, 4MyEgo said:

Bangkok Hospital, you should get a call from their accounts department in due course, if you don't, when the time comes for the shot, bring it to their attention.

Mine was with Bangpakok Piyavate Hospital.

[Cake Monster]

1 hour ago, 4MyEgo said:

We got a call yesterday confirming our shots will be administered in October and they requested our account details to refund us 400 baht on each shot, down from 3,800 baht to 3,400 baht.

 

What that is all about, might have something to do with the VAT being taken out ?

No, its nothing to do with the VAT being deducted.

The actual Vaccine has a cost of 1,100 Baht per shot

There are 2 shots required which makes this figure 2200 Baht

The Hospitals are only allowed by Law to make a certain maximum mark up = 1100 Baht ( I thought 50 % max )

Total = 3300 Baht

If I am incorrect I am sure I will be corrected soon 

[hotchilli]

6 hours ago, webfact said:

The department chief, Mr. Ekniti Nitithanprapas, said today that the report has caused widespread misunderstanding among the public, adding that all private hospitals have been exempted from VAT charges and, therefore, cannot pass the tax burden onto their clients

Just the usual mark-up.

[Tropicalevo]

2 hours ago, 4MyEgo said:

We got a call yesterday confirming our shots will be administered in October and they requested our account details to refund us 400 baht on each shot, down from 3,800 baht to 3,400 baht.

Ahh. The old 'Nigerian scam' trick. "I want to send you money, please give me your account details!!!"

(winking emoji)

Seriously, I would think that it is the hospitals charging the VAT not the revenue department.

 

Another scam -

The private company that supplies my electricity charged me VAT for about 10 years until I insisted on a VAT receipt. Suddenly, no VAT?

[natway09]

I have never been charged VAT for hospital (private or public) services.or products

Bet your sweet life that if they got charged VAT they would pass it on or just 

add it into the margin

[VocalNeal]

It is imported so standard fees apply. 

 

Landed cost x duty

Plus 7% VAT

 

If there is no duty (0%) the I suspect it is purely 7% of landed cost. No need for drama.

Edited July 12, 2021 by VocalNeal

[Dogmatix]

4 hours ago, mtls2005 said:

This of course begs the obvious question has VAT actually been charged, at any point, on any vaccines (except for the donated ones)?

 

My guess would be, YES.

 

But with this regime who knows.

 

Maybe G2G (Sinovac) is excluded?

 

Sinopharm probably got an exclusion.

 

 

Not much transparency obviously.

 

Best never to follow the money, the bulk of which ends up in one place.

 

 

The medical institution importing Sinopharm was able to issue a decree in the Royal Gazette with the force of law providing the ability to import and distribute vaccines independently of the government. That probably means no Revenue Department involvement either.  Interestingly, they are empowered to import any vaccine but probably only the Chinese will sell directly to a non-government entity.  The Western pharmas want the importing government to take over all the responsibility for emergency use vacccines.  

[mtls2005]

50 minutes ago, Dogmatix said:

Sinopharm

 

Yeah, sinopharm is in a special category. It carries a garuda stamp so very much hands off. It was approved by the Thai FDA, ordered, paid for in one day, and delivered 10 days later.

 

It is said to be sold for 888 baht/dose.

 

I think we are safe in saying VAT is not in anyway associated with this one.

 

 

[4MyEgo]

5 hours ago, Tropicalevo said:

Ahh. The old 'Nigerian scam' trick. "I want to send you money, please give me your account details!!!"

(winking emoji)

Ah....not so fast, we said we would call them back, which department, got it.

 

Then we found the number on the web and called, so Nigerian there mate.

[4MyEgo]

6 hours ago, Cake Monster said:

No, its nothing to do with the VAT being deducted.

The actual Vaccine has a cost of 1,100 Baht per shot

There are 2 shots required which makes this figure 2200 Baht

The Hospitals are only allowed by Law to make a certain maximum mark up = 1100 Baht ( I thought 50 % max )

Total = 3300 Baht

If I am incorrect I am sure I will be corrected soon 

Will get the wife to check her account soon and see how much they put in, if it's 1,000 for the two of us, you will be 100% correct, if it's 900 baht for the two of us, I will put it down as a tip for the cute nurses.

[Hayduke]

13 hours ago, webfact said:

he Revenue Department has dismissed, as groundless, a report widely circulated on social media that it is charging value-added tax (VAT) on COVID-19 vaccines being procured by private hospitals

 

An official denial....means it must be true.

 

 

Edited July 12, 2021 by Hayduke