Hi,

Do I need to charge my clients 7% VAT from foreign countries for services I provided in Thailand?

Example:

Client A from Japan interested to have an annual company meeting in Bangkok and requires my expertise in organizing the meetings. This also will include rental of equipment and venues. Do I charge them with the 7% VAT?

Found in one of the site:

WHO IS EXEMPT:

1/. Exports 2/. Services provided in Thailand for persons in foreign countries

True/False?

Any official website that I could refer to?

Thanks

Explorer

The example activity is subject to VAT because the service is actually NOT exported but rather benefits a venture on Thai soil.

Other situation will be if you carry out a study on the Thai market or local exhibition facilities and transfer these information to a foreign county for exclusive use there.

Then the service would be excempted from VAT.

To make it more easier to understand:

You coordinate a film project for a foreign company that intends shooting a feature film in Thailand.

a. The movie will only be shown abroad: Not subject to Thai VAT

b. The movie will be shown in Thailand as well: Subject to Thai VAT

Therefore it is not just a matter that the ordering party is not located in Thailand but rather where the service is going to initiate benefit.

Sometimes, however, there is not a clear cut and/or there are overlaps and surely it is also always a matter of individual view. When in doubt consult with your (experienced) accountant and/or the revenue department.

Hope this helps.

Cheers,

Richard

Edited May 9, 200521 yr by Richard Hall

For VAT information see:

http://www.rd.go.th/publish/6043.0.html

SM

Richard Hall & Sumitr Man - thanks for the info

Explorer

If one of them incurred the expense personally, on a tourist visa, wouldn't he technically be entitled to a VAT refund? Or is that blatant avoidance?

If one of them incurred the expense personally, on a tourist visa, wouldn't he technically be entitled to a VAT refund? Or is that blatant avoidance?

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For a VAT refund you have to take the product out of the country (and show it at the airport). I'd like to see someone trying to explain how they are taking "meeting services" out the country