Vat Exports

[dave111223]

Well another tax year has rolled around and still no solution. Anyone come up with anything to solve this?

Surely there must be a lot of people out there running similar businesses sending out small packages?

[Robbogeordie]

We havn't found a satisfactory solution either.

[TravelerEastWest]

I recently visited the main customs office for an unrelated matter and asked a friendly officer for advice.

His reply was to apply for an advance ruling on your imported raw materials which would then make things easier when you export.

Sounded like lots of paperwork so I did not take notes.

Meanwhile VAT on export is not a big concern for us but VAT paid on import of raw materials is as is duty.

A number of options exist such as keeping good records and the filing for a duty drawback and VAt refund upon export if you have good records.

The problem that other posters have along with ourselves is that the cure is worse than the bite.

We could probably get back all our VAT and Duty but the record keeping costs would exceed what we would receive.

Edited November 3, 2010 by TravelerEastWest

[raro]

I recently visited the main customs office for an unrelated matter and asked a friendly officer for advice.

His reply was to apply for an advance ruling on your imported raw materials which would then make things easier when you export.

Sounded like lots of paperwork so I did not take notes.

He was probably referring to the 19 biz scheme. It is a lot of paperwork and some strings atttached to (factory license etc...) but saves the import duties in the end!

[TravelerEastWest]

I recently visited the main customs office for an unrelated matter and asked a friendly officer for advice.

His reply was to apply for an advance ruling on your imported raw materials which would then make things easier when you export.

Sounded like lots of paperwork so I did not take notes.

He was probably referring to the 19 biz scheme. It is a lot of paperwork and some strings atttached to (factory license etc...) but saves the import duties in the end!

So in the end it is possible to get back VAT and duty but the paperwork must be correct which can be time consuming and expensive.

As an example using a courier the additional costs over the post office can cost more than the savings. Even using teh one post office in Bangkok that is said to provide proper documentation is more expensive than the savings unless you are perhaps located right next to that post office?

[raro]

I recently visited the main customs office for an unrelated matter and asked a friendly officer for advice.

His reply was to apply for an advance ruling on your imported raw materials which would then make things easier when you export.

Sounded like lots of paperwork so I did not take notes.

He was probably referring to the 19 biz scheme. It is a lot of paperwork and some strings atttached to (factory license etc...) but saves the import duties in the end!

So in the end it is possible to get back VAT and duty but the paperwork must be correct which can be time consuming and expensive.

As an example using a courier the additional costs over the post office can cost more than the savings. Even using teh one post office in Bangkok that is said to provide proper documentation is more expensive than the savings unless you are perhaps located right next to that post office?

in order to qualify for the 19 biz scheme you need to have a production facility and factory license. The volumes produced in such facilities are usally larger than what could be reasonably sent by mail.