Vat Registration For Work Permit

[Digger]

Has anyone come across this before - I have tried to look up the specific requirments and documents required however I cannot find anything relating to VAT certification. All my other documents are in order (capitalisation, non imm B visa, 4 employees etc) but my lawyer tells me I need to register for VAT. I have no problem indoing so but its going to slow down the application for my WP and until I get the WP, the company cannot start trading.

If anyone can shed some light on this I would be very grateful.

[andreasbkk]

Hi,

If you have a turnover more that 1,000,000, you need to register for VAT.

Already now, Labour Dpt prefers farangs got 50,000 Baht a month. And minumum salary is about 170 Baht a day for Thai, and you need four.

Then, how should you be able to explain Labour Dpt, you can run a businnes with a turnover lesser than 1 mil? In Thailand non-profit business is not legal.

Cheers,

Andrew

[george]

my lawyer tells me I need to register for VAT. I have no problem indoing so but its going to slow down the application for my WP and until I get the WP, the company cannot start trading.

Yes, the company must be registered for VAT.

[Digger]

Thanks for your prompt replies guys.

[Sunbelt Asia]

Confirmed in all cases, your company must applied for VAT if you want a work permit.

www.sunbeltasia.com

[huski]

my lawyer tells me I need to register for VAT.  I have no problem indoing so but its going to slow down the application for my WP and until I get the WP, the company cannot start trading.

Yes, the company must be registered for VAT.

george is right, you must register and pay VAT. my accountant takes care of it and i believe we make 2 or 3 payments a year.

[Richard Hall]

my lawyer tells me I need to register for VAT.  I have no problem indoing so but its going to slow down the application for my WP and until I get the WP, the company cannot start trading.

Yes, the company must be registered for VAT.

george is right, you must register and pay VAT. my accountant takes care of it and i believe we make 2 or 3 payments a year.

Wish it would be that easy. VAT statements and payments have to be done MONTHLY by the 5th of the following month at the latest. Even there was no VAT collection for a particular month you also have to hand in the form timely just indicating "O".

Running late gets you a fine of Baht 200 each time.

Make sure your accountant has everything under control and sticks to the rules. Otherwise there might be unpleasant surprises on judgement day (= entry permit work permit extensions) and additional fines and interest are due.

[Nicke]

I am not VAT registrated and I had my work permit for 4 years now, I am however, required to pay my monthly income taxes and social welfare every month and a guarantee paper from revenue department to bring with my renewal application. (They may also decline to make this paper if the company is not showing profit.)

I think I heard before I need to have a turnover of 1,2 million baht to be required to register for VAT.

Maybe the rules in BKK are different from Phuket?

[opalhort]

Wish it would be that easy. VAT statements and payments have to be done MONTHLY by the 5th of the following month at the latest.  Even there was no VAT collection for a particular month you also have to hand in the form timely just indicating "O".

Running late gets you a fine of Baht 200 each time.

Make sure your accountant has everything under control and sticks to the rules. Otherwise there might be unpleasant surprises on judgement day (= entry permit work permit extensions) and additional fines and interest are due. 

As I understand it the VAT declaration/payment has to be made monthly not later than the 15th of the following month with details stated on form 30, whereas personal income tax (form 1) and withholding tax (form 3) has to be submitted not later than the 7th of the following month. If the due date (7th or 15th) is a holiday or weekend, the next working day is the due date.

opalhort

[Indo-Siam]

I will also confirm that employing company must be VAT registered in order for any foreign employees to be hired.

But - I also agree with rules about VAT only being legally required for a company if at least XXXX baht worth of invoicing is done within a given year. I thought the number was a bit less than 1,000,000 baht, but this may have changed.

Realistically, I would expect that any company not earning enough to be required to pay VAT would also not be "viable" enough for the officials to allow it to hire foreign employees.

Cheers!

Indo-Siam

[Sunbelt Asia]

I am not VAT registrated and I had my work permit for 4 years now

You were "grandfathered" The law changed about 3 years ago.

also agree with rules about VAT only being legally required for a company if at least XXXX baht worth of invoicing is done within a given year. I thought the number was a bit less than 1,000,000 baht, but this may have changed.

My understanding it use to be 600,000 Baht, now it's 1,200,000 Baht in gross sales.

www.sunbeltasia.com

[Richard Hall]

Wish it would be that easy. VAT statements and payments have to be done MONTHLY by the 5th of the following month at the latest.  Even there was no VAT collection for a particular month you also have to hand in the form timely just indicating "O".

Running late gets you a fine of Baht 200 each time.

Make sure your accountant has everything under control and sticks to the rules. Otherwise there might be unpleasant surprises on judgement day (= entry permit work permit extensions) and additional fines and interest are due. 

As I understand it the VAT declaration/payment has to be made monthly not later than the 15th of the following month with details stated on form 30, whereas personal income tax (form 1) and withholding tax (form 3) has to be submitted not later than the 7th of the following month. If the due date (7th or 15th) is a holiday or weekend, the next working day is the due date.

opalhort

Dear Opalhard,

guess you are right and the 15th of the following should be alright for filing the VAT report. Well, usually we do personal income tax and VAT payment in one shot to save a way and hence I assumed the reporting dates were the same.

Yes, can confirm as well if the reporting days fall on a holiday or week-end extra time is granted.

7th for income tax instead of 5th - can well be. Obviously my accountant has built in 2 extra days to be on the safe side that all papers are handed in early enough. (Hey, that makes me happy 'coz it confirms she is indeed a smart one )

Thanks for the hints always starving to learn something new and require some additional wisdom.

Richard

[opalhort]

Dear Opalhard,

guess you are right and the 15th of the following  should be alright for filing the VAT report. Well, usually we do personal income tax and VAT payment in one shot to save a way and hence I assumed the reporting dates were the same.

Yes, can confirm as well if the reporting days fall on a holiday or week-end extra time is granted.

7th for income tax instead of 5th - can well be. Obviously my accountant has built in 2 extra days to be on the safe side that all papers are handed in early enough. (Hey, that makes me happy 'coz it confirms she is indeed a smart one  )

Thanks for the hints always starving to learn something new and require some additional wisdom.

Richard

Hi Richard,

the due dates are stated on the reverse side of the relevant forms.

we also submit all of our papers by the 7th for the reasons you mentioned. why go twice to the office.

the reason why they grant 15 days for VAT filing is that if you make a payment by cheque at the end of the month, esp. if payment is made by mail, you may not get the receipt within 7 days.

But there is a special form which allows you to file VAT claims for receipts you got after the 15 day period. With this form you can file a VAT refund claim one or more month(s) later.

opalhort

[Richard Hall]

Dear Opalhard,

guess you are right and the 15th of the following  should be alright for filing the VAT report. Well, usually we do personal income tax and VAT payment in one shot to save a way and hence I assumed the reporting dates were the same.

Yes, can confirm as well if the reporting days fall on a holiday or week-end extra time is granted.

7th for income tax instead of 5th - can well be. Obviously my accountant has built in 2 extra days to be on the safe side that all papers are handed in early enough. (Hey, that makes me happy 'coz it confirms she is indeed a smart one  )

Thanks for the hints always starving to learn something new and require some additional wisdom.

Richard

Hi Richard,

the due dates are stated on the reverse side of the relevant forms.

we also submit all of our papers by the 7th for the reasons you mentioned. why go twice to the office.

the reason why they grant 15 days for VAT filing is that if you make a payment by cheque at the end of the month, esp. if payment is made by mail, you may not get the receipt within 7 days.

But there is a special form which allows you to file VAT claims for receipts you got after the 15 day period. With this form you can file a VAT refund claim one or more month(s) later.

opalhort

Hi Opalhort,

just noticed I messed up your name before. Sorry was indeed unintentionally.

Thanks for the additional advice which makes a lot of sense. Actually I never looked at the backside of the forms 'coz I rather usually rely on my accountant in dealing with the tax authorities. Officiers of Sathon road based tax office have indeed never been my favorite people of company (very carefully expressed) because of experiences in the past but this time I have to admit being quite impressed with that logical system in operation. Makes up a little bit for last time when three ladies audited my office featuring kind of a rude behaviour, plenty of accusations and SECRETLY taping our discussion

Richard