Thailand's Food Sellers And Taxi Drivers May Pay V A T

[Thai at Heart]

I thought everybody PAID VAT, the headline should be that Taxi Drivers & Food Vendors may CHARGE VAT.

Agreed. I didn't realize they didn't need to pay VAT to began with. Silly that restaurants need to pay it but the food vendor outside doesn't. But anyways, yes, it's not going to get enforced since there's no way to enforce it. But it's also just as unenforceable that I pay my US taxes on income I made aboard and yet I do it. So it might increase tax receipts.

Anyways, how many things are law but just not enforced? If I remember correctly, it's illegal to even have a food cart on the street yet everyone does it.

They will just rate it against guestimated revenue.

[judokrab]

slampolee wrote: "who is going to pay and who pays the V.A.T. the co-operative that rents the taxi out to the drivers or the drivers themselves"

UbonOz wrote: "It is the customer that pays the VAT not the supplier"

That is not how VAT works. Each supplier pays VAT to their upline supplier all the way back up the chain. But if they are registered for VAT they can claim it back. So pretty much everyone gets to claim it back, apart from any final customer who is not a business registered for VAT.

So, the owner who rents the taxi out must charge the driver VAT on the rental. But the co-op gets to claim back any VAT they paid on mechanical reapirs, for example. The taxi driver will charge VAT on top of the fares he charges, and it is the taxi driver (the supplier) who 'pays' the VAT, to the government - but he gets to claim back the VAT he was charged on the rental and on his fuel. If the person who pays the taxi fare is a business person registered for VAT, then they can claim back the VAT they paid on the fare.

A tax that is only paid by the final customer is called a sales tax, not a value added tax.

Edited April 16, 2013 by judokrab

[TackyToo]

What a tricky way to tell the people; "Look we can not pay for our populist policies like the rice scam and the first car owner bs anymore,- here is your share!"

[Locationthailand]

Further admission of failure by this govt who have acted on populist policies without investigating the possible outcome. Taxing all cash businesses? How stupid are these imbeciles in PTP? There is a huge underground cash economy in Thailand and that is why the corruption is so easy to continue - start trying to interfere with this and watch the voting (mindless) change sides super fast, especially those who benefit the most.

[givenall]

Vendors and cabbies filing VAT returns? Perhaps E&Y or Deloitte for the annual audition and balance sheet. What the hell are these guys smoking?

Can you also make the Police to pay VAT on the tea money they collect

[siampolee]

judokrab.

One is inclined to ask how long have you lived in this country, ?

We are talking about who is going to pay the final account, we are all well aware that the consumer/ customer pays the V.A.T. we are all well aware of the sales tax system.

My wife pays V.A.T. and also claims refunds of V.A.T. however she is the one who runs the business.

The business entities we are talking about are but one man bands in many cases and the taxi cooperatives are not the most open of business practices and ethics.

When it comes to fiscal responsibility concerning the payment of taxes into the government revenue system it will indeed take second or third place or to be honest it probably won't even appear in the runners list of the business entities being targeted.

Precedent will continue to be taken by payment of the unofficial operating costs charged by the so beloved foot soldiers of the bureaucracy in this fair land.

The whole fiasco of the proposed revenue collection scheme will indeed be as effective as a chocolate fireguard.

[Bluespunk]

How does an issue like this come up during a national holiday?

i'm guessing they hope everyone will be too drunk, wet or both to pay any attention. Edited April 16, 2013 by Bluespunk

[Bluespunk]

VAT on my Khao man khai???

There we go!

Make expats paid taxes!!

if we work we do pay income tax and everyone pays VAT expat or otherwise.

[Briggsy]

The actual news buried in the article is the yet-to-be-announced-officially but almost certain to come VAT rise. The food vendor, taxi driver idea sounds unworkable to me. There is a VAT minimum threshold as well.

[spidermike007]

This government is supposed to represent the poor (their voterbase) and yet, they have no problem of taking from the poor and give to the already VERY rich.

When will the Thai people wake up ??

In your dreams. This government has never represented the poor. They told a pack of lies to get into office, and a percentage of people bought into the lies. But, representing the poor? That is a bit like saying Obama represents the average American, or that he cares about the average American. Even some of us that voted for him realize he cares little for the small guy. The same applies here. Do you think that the woman who wears 30,000 baht outfits, and 15,000 baht shoes cares about the little guy or gal? There are very, very few politicians worldwide who give a rats ass about the poor. Very, very few. Do not be fooled. That is what these cretons are hoping for.

Mike Macarelli

Chaiyaphum, Thailand

Sent from my iPad using Thaivisa Connect Thailand mobile app

[lemoncake]

why give a tax break to look for another tax to impose?

3% reduction in corporate does not equal 1% rise in VAT

and cabbies paying VAT will only cost more as a large number of them, can not even read or write

[moe666]

this will hurt the Thais who eat daily at vendor stalls and the ones who can afford a taxi. This government is a piece of work, where are the boys in red with their ability to make this look like it will be a good thing

[Thai at Heart]

this will hurt the Thais who eat daily at vendor stalls and the ones who can afford a taxi. This government is a piece of work, where are the boys in red with their ability to make this look like it will be a good thing

There are hundreds of restaurants turning over way above the limit who should be registered.

I don't think they will be chasing noodle stands, more large restaurants who are dodging vat.

[culicine]

How many of these food vendors are registered businesses? How many of those that should pay tax pay any taxes at all? Even if vendors increase their product price by 7%, how likely will it be that this money is passed on to the government? That will require good will on the part of the vendors.

[longway]

why give a tax break to look for another tax to impose?

3% reduction in corporate does not equal 1% rise in VAT

and cabbies paying VAT will only cost more as a large number of them, can not even read or write

They should call it what it is and call it the rice tax. They have squandered a bomb there and need to claw it back somehow.

[Soi Sauce]

The Shinawatra way. Fick the poor and llok after the rich.. Beyond disgusting.

[Soi Sauce]

The Shinawatra way. Fick the poor and llok after the rich.. Beyond disgusting.

The plan is, and always has been, to make the rich really rich, destroy the poor, and buy up the country on the cheap.

The rich money is definitely leaving the country now as the baht is strong.

When it deliberately collapses;

Thailand for nothing,

Get the country for free.

Watch this space.

[manarak]

have small businesses pay VAT is one of the worst ideas ever

[hellodolly]

This government is supposed to represent the poor (their voterbase) and yet, they have no problem of taking from the poor and give to the already VERY rich.

When will the Thai people wake up ??

That is why they choose to not educate the poor so they can not see what they are really doing to them.

[hellodolly]

Will the Taxi's be allowed to pay the VAT with there credit cards?

[Skywalker69]

slampolee wrote: "who is going to pay and who pays the V.A.T. the co-operative that rents the taxi out to the drivers or the drivers themselves"

UbonOz wrote: "It is the customer that pays the VAT not the supplier"

That is not how VAT works. Each supplier pays VAT to their upline supplier all the way back up the chain. But if they are registered for VAT they can claim it back. So pretty much everyone gets to claim it back, apart from any final customer who is not a business registered for VAT.

So, the owner who rents the taxi out must charge the driver VAT on the rental. But the co-op gets to claim back any VAT they paid on mechanical reapirs, for example. The taxi driver will charge VAT on top of the fares he charges, and it is the taxi driver (the supplier) who 'pays' the VAT, to the government - but he gets to claim back the VAT he was charged on the rental and on his fuel. If the person who pays the taxi fare is a business person registered for VAT, then they can claim back the VAT they paid on the fare.

A tax that is only paid by the final customer is called a sales tax, not a value added tax.

In the end the man on the street has to pay more, they cant claim VAT back = more expencive, right?

[AleG]

why give a tax break to look for another tax to impose?

3% reduction in corporate does not equal 1% rise in VAT

and cabbies paying VAT will only cost more as a large number of them, can not even read or write

PTP reduced corporate taxes by 33% not 3%, from 30% to 20%. Now that the rich got their break is time for everyone else, specially from middle class down, to foot the bill.

[hellodolly]

why give a tax break to look for another tax to impose?

3% reduction in corporate does not equal 1% rise in VAT

and cabbies paying VAT will only cost more as a large number of them, can not even read or write

PTP reduced corporate taxes by 33% not 3%, from 30% to 20%. Now that the rich got their break is time for everyone else, specially from middle class down, to foot the bill.

Well that certainly is good sound PTP logic.

[belg]

make vat 10%, will be easier to calculate the bill, after the 10% service charge

[hellodolly]

slampolee wrote: "who is going to pay and who pays the V.A.T. the co-operative that rents the taxi out to the drivers or the drivers themselves"

UbonOz wrote: "It is the customer that pays the VAT not the supplier"

That is not how VAT works. Each supplier pays VAT to their upline supplier all the way back up the chain. But if they are registered for VAT they can claim it back. So pretty much everyone gets to claim it back, apart from any final customer who is not a business registered for VAT.

So, the owner who rents the taxi out must charge the driver VAT on the rental. But the co-op gets to claim back any VAT they paid on mechanical reapirs, for example. The taxi driver will charge VAT on top of the fares he charges, and it is the taxi driver (the supplier) who 'pays' the VAT, to the government - but he gets to claim back the VAT he was charged on the rental and on his fuel. If the person who pays the taxi fare is a business person registered for VAT, then they can claim back the VAT they paid on the fare.

A tax that is only paid by the final customer is called a sales tax, not a value added tax.

In the end the man on the street has to pay more, they cant claim VAT back = more expencive, right?

Quite rite. It would be funny seeing a person with a handful of restaurant receipts trying to get the money back as they leave Thailand.

[h90]

These poor food stand people. First they have to pay shakedown money to the police, and now the government wants them to pay taxes to make up the shortfall for a tax break for the rich? I LOVE reading TV each day... :-)

But at before the next vote they will receive 500 Baht and many promises....

[waza]

More of the Thaksin led PTP economic success.

[Tboy928]

So the select few receive a tax cut and the people at large are going to be targeted to provide the shortfall in tax revenue income.

Shouldn't be a problem to enforce taxi V.A.T. payments as all transaction (well nearly all) are recorded via the meter charge and the income can be read when the meter is bled at the end of a drivers day or his or her shift. Owner drivers should be no big problem,

Problem is going to be with the rented taxi's which at times are sub leased a time or two, these will be a challenge regarding the levying of the tax who is going to pay and who pays the V.A.T. the co-operative that rents the taxi out to the drivers or the drivers themselves named or unnamed sub leased drivers this situation is going to compound the payment conundrum.

Food stalls, well that is going to be a farce will there be a tax official at each stall, booth shop etc to record the income so as to thus be able to both assess and level the tax payment due?

So good to see that this scheme is relieving the rich of yet another part load of their tax burden and moving the onus of tax payment to the little people both consumers and providers of services, indeed a fine example of in truth what this government actually thinks and the contempt it has of the electorate.

Indeed the rich get richer and the Indeed poor get poorer, throw another peasant on the fire of money so as to keep the rich warm abed at night

Does the smaller vendors now , claim tax back from where they buy the food they sell?

[Briggsy]

This thread has proved that the majority of posters have no idea

how VAT is levied.

how VAT is collected.

which businesses need to register for VAT

what VAT registration means for a business.

VAT registration is not the end of the world and can bring benefits to a business. However this is not the case if the business is currently operating completely under the radar and illegally so. By this, I mean, not paying income tax when they should, not holding any of the requisite licences when they should, not submitting audited accounts to the Revenue when they should.

This is, as the article states, part of an ongoing tax reform to "recoup the loss" of revenue from corporation tax when the rate was reduced as part of ASEAN-wide agreements.

[Thai at Heart]

This thread has proved that the majority of posters have no idea

how VAT is levied.

how VAT is collected.

which businesses need to register for VAT

what VAT registration means for a business.

VAT registration is not the end of the world and can bring benefits to a business. However this is not the case if the business is currently operating completely under the radar and illegally so. By this, I mean, not paying income tax when they should, not holding any of the requisite licences when they should, not submitting audited accounts to the Revenue when they should.

This is, as the article states, part of an ongoing tax reform to "recoup the loss" of revenue from corporation tax when the rate was reduced as part of ASEAN-wide agreements.

Indeed, there are genuinely millionaire running noodle stands.