Company Vat And Work Permits

[djlest]

Hello

Having some conflicting information from various sources -

If i set up a company to import into thailand - and intend to apply for a work permit as fast as possible

I understand the company must have a minimum of 4 thai workers (on social security)

I understand that all registered capital (2m) must be fully paid up

But what about the company VAT?

I was told that a company does not need to register for VAT until it reaches 1.8mil in total sales?

So a brand new company registering for VAT just to get a work permit for myself - or if i am the shareholder or director - does this still apply?

Quite confused...

[Sunbelt Asia]

In the first year, most Labor offices will allow only 2 Thai employees per work permit but 4 will be necessary the second year. Capital does not necessarily need to be paid up, but can be available in assets, it simply means that you sign a form stating you have the necessary capital in assets and or cash.

In general in order to apply for a work permit, it is required to have the VAT license since it is assumed you will need the 1.8 million in order to cover Thai salaries, operating expenses and your work permit. A company with a foreign director without a work permit won't need to pay VAT until 1.8 million, however, since you plan on importing it is best to have VAT since you will need to pay VAT to customs anyway and this gives you a way to offset those costs if you are already in the system.

Sunbelt Asia has extensive experience setting up companies and VAT as well as import licenses so please feel free to contact us for a free consultation if you need further explanation.

[sunbelt][/sunbelt]