VAT Tax question

[WaveHunter]

Just a real basic question.  Is VAT assessed only on imported purchases in Thailand or does it apply to all purchases, including those made within Thailand?  Are there ANY taxes that are payable for high-value purchases of consumer goods for personal use made within Thailand (similar to sales taxes that must be paid in the USA)?

[Etaoin Shrdlu]

I believe VAT is levied on all consumer purchases made in Thailand in the formal economy. There may be exceptions, but I can't think of any at the moment.

 

The VAT amount is included in the purchase price, so is isn't like the US where you have to add a sales tax on top of the advertised price to see what your total cost will be. You will normally get a receipt that shows the VAT amount that was included in the purchase price.

 

VAT is not levied on purchases made in the informal economy, and some VAT-registered shops may sell items off the books and not levy VAT. Sometimes a VAT receipt may be desired by the purchaser, in which case The merchant may be able to levy VAT and issue a VAT receipt upon request, but only if the merchant has registered for VAT. 

 

[WaveHunter]

15 hours ago, Etaoin Shrdlu said:

I believe VAT is levied on all consumer purchases made in Thailand in the formal economy. There may be exceptions, but I can't think of any at the moment.

 

The VAT amount is included in the purchase price, so is isn't like the US where you have to add a sales tax on top of the advertised price to see what your total cost will be. You will normally get a receipt that shows the VAT amount that was included in the purchase price.

 

VAT is not levied on purchases made in the informal economy, and some VAT-registered shops may sell items off the books and not levy VAT. Sometimes a VAT receipt may be desired by the purchaser, in which case The merchant may be able to levy VAT and issue a VAT receipt upon request, but only if the merchant has registered for VAT. 

 

So, what you are saying is that any advertised price on a big-ticket item like a computer will already have the VAT figured in to the listed price I see on Lazada (for instance) and I would not be charged 7% VAT in addition to the listed price?

 

I can't ever recall seeing it added onto the list price upon purchase but never really thought about it before now.

[Etaoin Shrdlu]

2 hours ago, WaveHunter said:

So, what you are saying is that any advertised price on a big-ticket item like a computer will already have the VAT figured in to the listed price I see on Lazada (for instance) and I would not be charged 7% VAT in addition to the listed price?

 

I can't ever recall seeing it added onto the list price upon purchase but never really thought about it before now.

Yes, if the seller is registered for VAT and charges VAT on the purchases, it is supposed to be included in the price displayed and charged for the item. I can't speak for all Lazada seller, but I've never been charged VAT separately for any of my Lazada purchases.

 

If the merchant is registered for VAT, but assumes that purchasers prefer not to pay the VAT-included price, he or she may display a price net of VAT expecting that the purchaser prefers the off-the-books lower price. If a customer then requests a formal VAT invoice, the merchant would likely then increase the price to include the VAT. This usually only happens at smaller shops and less formal channels. I don't think this will happen on Lazada, but can't say for sure. 

[digbeth]

Business don't have to pay VAT if their takings is under 1.8million baht a year, so for some shops, they can have many accounting entities they can shuffle around and give discount if you don't require a receipt or some mom and pop shops will charge more if you ask for a VAT receipt 

 

But in all retailer, VAT is always collected, only certain type of goods like staple rice and grains, meat and vegetables and plain milk are VAT exempt 

[digbeth]

only times VAT is not included on the posted price is often restaurant and hotels, if they have something to the effect of price excludes vat on their menu cover or sign out front 

 

often levied with the 10% service charge