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Posted

If we export small made to order craft items can we pay zero VAT?

For example:

An order is placed for a $100 item from the UK we receive the details and payment online with funds going to a UK bank account for our UK business.

So actually a UK business that we own gets the intial order and then places the order with us in Bangkok. We are paid once a year under a service contract

We make the product one week later and mail it directly to the final customer - (not our customer for the Thai business - a customer of our UK company)

We use the local post office so we do not have proper refund documentation - I have given up on VAT refund requests.

So do we have to charge 7% on the $100 order? Or can we file zero VAT returns monthly?

The Thai business is 100% export.

Posted

Please check below link -  Revenue Department for better understanding.

<a href="http://www.rd.go.th/publish/6043.0.html" class="bbc_url" title="External link" rel="nofollow external">http://www.rd.go.th/...ish/6043.0.html

Thank you for the link which is helpful.

4.2 Zero Percent Rate

Certain activities are liable to VAT at the rate of zero percent. Those activities include:

 - export of goods;

It seems like we have to file VAT above 1.8 million in sales but with all zeros - which is OK.

I am actually looking for current real life experiences if anyone has recent ones to share.

 

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