Thaï Company Payment Oversea - Vat And Wht

[thibautm]

I created a post in the main forum, but maybe it place it's more here:

Hello,

I have questions about the payments of invoice to company based oversea. I asked several accountants and they gave different answers, so maybe some of you have experience with this matter.

1. In case a Thaï company has to pay Royalties to a company abroad, does the company have to pay WHT on behalf of the foreign company? Does have to pay as well VAT on behalf?
   

One accountant told me the rates of WHT is 15%, depends if Treaty exists, but the most difficult to understand, is that the foreign company has to charge VAT, and the Thaï company pay on behalf of the Foreign company. It seems difficult to understand how a foreign company can charge VAT for it transaction in Thailand, even if in their registered countries there is no VAT for oversea transactions. Even the WHT, seems obvious as the in many countries no have tax on foreign transactions, so even if the accountant tell that the foreign company can claim a refund, it's a big headache for finally nothing, I assume.

The accountant mention that as the services is used in Thailand, they have to charge both. But it sounds a bit difficult to understand. As the foreign company doesn't have to deal with thaï tax system, so it will be a surcharge for the Thaï company, the foreign charge net invoice, and just have to be compliant with it country.

2. As well do you have definition and examples of services and professional fees in Thaïland, as on revenue department website it mentions that:

5. Service and professional fees

3 % if paid to Thai company or foreign company having permanent branch in Thailand;

5% if paid to foreign company not having permanent branch in Thailand

Ex: a Thaï company hire a US company in order to make a website, consulting services, copywritting.... The services are done abroad, nobody came in Thailand.

The Thaï company has to withheld 5%, 15% WHT (taking into account that the invoice will have to be increase of this cost by the supplier as the supplier has to apply the tax from it country but don't deal with tax tax...)

ps: I assume that referal commission, are considered as Royalties?

Thank by advance for your support and share your experience. And if you know a accounting expert on this matter will be nice to share the contact as well.