Tax Or No Tax

[eurotek]

Is it correct that a company that should be registered for VAT here in Thailand fragrantly does not register so they can take an advantageous position in the market place against Companies that are.

What can be done about this? Can they be reported? if so to who?

[TAWP]

Is it correct that a company that should be registered for VAT here in Thailand fragrantly does not register so they can take an advantageous position in the market place against Companies that are.

Sounds like a question but didn't end with a question-mark. Are you asking us about a specific company, or if *any* companies might be doing this or are you stating that you know of a company that does this and want help in what to do?

[dave111223]

As long as they claim to be earning less than 1.8M in sales per year then there is not much you can do.

If the case is really blatant (ie line of customers out the door and obviously making a killing) then i guess you could report them and tax department might send someone to do an audit and estimate actual sales based on physical customers. But it would have to be a situation where it's really obvious they are making more than 1.8M (or if they've got 25 unregistered employees or something)

[craigt3365]

Let's move this over to the Business forum.

Topic Moved.

[thailandbluegrass]

Yeah can you re-write that one so a simpleton can understand it too? Sounds like a Love / Hate relationship to me.

[eurotek]

Is it correct that a company that should be registered for VAT here in Thailand fragrantly does not register so they can take an advantageous position in the market place against Companies that are.

Sounds like a question but didn't end with a question-mark. Are you asking us about a specific company, or if *any* companies might be doing this or are you stating that you know of a company that does this and want help in what to do?

Yes defiantly a question, I have a friend who owns a legit company turning over more than 4 million who is VAT registered, however the "competition" who are larger than him blatantly offers the same products for a price excluding VAT thus undercutting him by at least 7%. generally these are cash deals so pretty sure that it's money under the counter situation.

It can easily be roved the competition are earning more as their delivery trucks are on the road every day.

If you can guide me in the right direction it would be appreciated.

VAT is only 7% here, much less than in Europe. why do companies become legitimate and pay it? I don't understand other than hiding earnings.