Vat For Consultancy Work Overseas.

[buddy]

Dear All,

Small problem.

I am from the UK but based in Thailand.

I have been tasked to provide some Consultancy work in India which meant setting up a Thai company so i can get paid.

I have a query about Thailand Value Added Tax as my lawyer has confused me.

The automatic Thai thresh hold for 7% VAT imposition is 1.8 Million Baht, which the Consultancy will reach very quickly.

The consultancy work will only involve 1 person, myself providing training and instruction to Indian Engineers, so no goods shall be exported or imported.

My lawyer states that I have to charge the client in India 7% VAT once the thresh hold of 1.8 million Baht is reached and pay the 7% VAT in Thailand..?????

My understanding is that you cannot impose VAT on income earned overseas... and then transfer it into my company bank account in Thailand?

No money will be held at all in India (unless they dont pay me of coarse).

Any advice and clarification?

[dave111223]

Shouldn't you be consulting an accountant about VAT, not a lawyer?

http://www.thaivisa.com/thailand_vat.0.html

Your services would appear to qualify for 0% VAT. Which means you'd have to register for VAT, but would not actual end up owing any VAT.

4.2 Zero percent Rate

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

-export of goods;-

services rendered in Thailand and utilized outside Thailand;

[Soutpeel]

Shouldn't you be consulting an accountant about VAT, not a lawyer?

http://www.thaivisa....land_vat.0.html

Your services would appear to qualify for 0% VAT. Which means you'd have to register for VAT, but would not actual end up owing any VAT.

4.2 Zero percent Rate

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

-export of goods;-

services rendered in Thailand and utilized outside Thailand;

I think the OP lawyer is wrong, Thai VAT would not be payable, however the OP might find there is withholding tax on the indian end, I would get that checked out