Is no sales tax typical in Asian countries?

[Hal65]

In the US I'm used to paying a sales tax of about 9 or 10% for almost everything I buy. The only exceptions I can recall are the essentials: food, rent, that's about it.

In Thailand I notice that I don't pay sales tax for anything at all. Is this typical in Asian countries?

[tartempion]

VAT included.

If you shop at Macro or Global you Will see VAT amount on the invoice.

[Gumballl]

Sales Tax = Value Added Tax (VAT).

I believe it is (still) 7% in Thailand.

Note that you probably will not be charged VAT at low-end stores/shops. Only when you go to a mall or other 'reputable' shop will you see the charge on your receipt.

[Tim207]

You are still paying it. It is just added in to the price before time of purchase not at time of purchase. Once you get used to the idea of paying the price on the shelf you will get annoyed when they add tax on at the register in the US. The downside of it is that it isn't as transparent exactly how much the government is taking from you at each transaction.

[samran]

It's called a value added tax of in some places, a gods and services tax. As the name implies, it is added on to all goods sold and services provided.

Much more efficient, from an economists perspective, than the messy sales tax system you have in he States.

[nzvic]

NZ charges l5%...but it began late 1986 at a lower rate...was annoyed by it when travelling overseas in the 60's!

[Tim207]

It's called a value added tax of in some places, a gods and services tax. As the name implies, it is added on to all goods sold and services provided.

Much more efficient, from an economists perspective, than the messy sales tax system you have in he States.

Messy is an understatement. Although there is no national sales tax most states have a sales tax that is set by each individual state. Add to that some counties add on their own sales tax and add to that some municipalities add more on top. The end result is you have no idea what something will cost when you get to the register unless you have been to a place before. on the plus side you always know how much was added on by the government even if you don't necessarily know which level of government got what.

[MJP]

20% in the UK although some stuff is exempt and there's a lower rate of 5% on stuff like utility bills IIRC.

[wprime]

You pay 7% in Thai.

[Braddockrd]

This has to be a troll post. I can't believe anyone would write this seriously. The only country without a sales tax is Malaysia, until next year....

[PaulHamon]

I like Australia at least the governemt forced everyone to make inclusive of the price, when the brought it in.

Really annoying in Indonesia when everything is added on afterwards...

[Suradit69]

This has to be a troll post. I can't believe anyone would write this seriously. The only country without a sales tax is Malaysia, until next year....

"The only country without a sales tax is Malaysia ..."

There is (or at least was) no sales or income tax in the UAE. In fact a lot of basic things in the shops were available at prices reduced by government subsidy.

"This has to be a troll post. "

It does seem hard to believe the O/P has never bought things in Thailand from larger shops, supermarkets, in the malls that hand you a cash register receipt that usually breaks down taxes paid. And some places even offer special-purpose tax invoices. Not sure for whom, Maybe for retailers and restaurants to assist them avoid double taxation or for income tax relief.

[Estrada]

This has to be a troll post. I can't believe anyone would write this seriously. The only country without a sales tax is Malaysia, until next year....

I ran a Malaysian drinks manufacturing company for 2 years. Malaysia has had Sales Tax since the 29th February 1972. However it is not charged at the point of sale so that it is difficult to avoid paying it. Sales Tax in Malaysia is included therefore in the P.O.S. price to the customer. Goods that are exempt are not subject to Sales Tax if they are under the Sales Tax (Exemption) Order of 1980. Recently there was a news article that Thailand may move also to this system in order to prevent the rampant tax avoidance that has been going on for years (try getting a VAT receipt in China Town from VAT registered companies).

[macca46]

If you go to a Ma & Pa shop or any where else that you have to pay cash it will be included in the purchase price but that does not mean that they will pas it on to Government in full if at all 555 TIT

[stoli]

20% in the UK although some stuff is exempt and there's a lower rate of 5% on stuff like utility bills IIRC.

20% ? Really? Americans are, and should be, pissed off at 8% to 10%

20% in America would cause a revolt that would ne unstoppable. Those in the U.K. are too easy going apparently....

We work to provide for our family, not just the governments families, although at times it seems that we do provide more for them than our own.

Edited September 27, 2014 by stoli

[realenglish1]

Your paying sales Tax Its called VAT here 7% going back to 10% next year. They just usually quote prices inclusive of VAT

[MJP]

20% in the UK although some stuff is exempt and there's a lower rate of 5% on stuff like utility bills IIRC.

20% ? Really? Americans are, and should be, pissed off at 8% to 10%

20% in America would cause a revolt that would ne unstoppable. Those in the U.K. are too easy going apparently....

We work to provide for our family, not just the governments families, although at times it seems that we do provide more for them than our own.

Reckon the averge UK worker gives 65% to the government.

[gjoo888]

VAT is included in the price and on the price tags, unlike in the states where it's added to the price listed on the item when you pay. I can't say for all Asian countries, but I've been to about ten countries in Asia where it's always been included. The exceptions can be hotels and restaurants, in Thailand a 7% VAT and 10% service charge is sometimes added to the bill.

You often see a "+" or "++" after a price on some restaurant adverts, or as they call it "plus" or "plus, plus." That means either VAT or VAT and a service charge is added to the listed price.

[Tywais]

List of countries and their respective taxes - http://en.wikipedia.org/wiki/List_of_countries_by_tax_rates

[kannot]

It's called a value added tax of in some places, a gods and services tax. As the name implies, it is added on to all goods sold and services provided.

Much more efficient, from an economists perspective, than the messy sales tax system you have in he States.

Keep your religion out of this Samran

[Sophon]

20% in the UK although some stuff is exempt and there's a lower rate of 5% on stuff like utility bills IIRC.

20% ? Really? Americans are, and should be, pissed off at 8% to 10%

20% in America would cause a revolt that would ne unstoppable. Those in the U.K. are too easy going apparently....

We work to provide for our family, not just the governments families, although at times it seems that we do provide more for them than our own.

Reckon the averge UK worker gives 65% to the government.

That's a bit of an exaggeration. If you investigate a little you will find that the taxation of income in the UK is amongst the lowest in western Europe just as the UK VAT rate is also below the average in the E.U.

Sophon

[MJP]

20% in the UK although some stuff is exempt and there's a lower rate of 5% on stuff like utility bills IIRC.

20% ? Really? Americans are, and should be, pissed off at 8% to 10%

20% in America would cause a revolt that would ne unstoppable. Those in the U.K. are too easy going apparently....

We work to provide for our family, not just the governments families, although at times it seems that we do provide more for them than our own.

Reckon the averge UK worker gives 65% to the government.

That's a bit of an exaggeration. If you investigate a little you will find that the taxation of income in the UK is amongst the lowest in western Europe just as the UK VAT rate is also below the average in the E.U.

Sophon

Fuel tax, VAT, car tax, council tax, income tax, national insurance . . .

No about 65% goes to the government.

[Griffo63]

20% in the UK although some stuff is exempt and there's a lower rate of 5% on stuff like utility bills IIRC.

Most importantly there is no VAT on most food items

[jacko45k]

Just regard it as already included in your purchases at 7%.

It may seem strange at first, but I thought it was strange, even slightly deceptive, for it to be added after the purchase when in the USA.

[Estrada]

20% in the UK although some stuff is exempt and there's a lower rate of 5% on stuff like utility bills IIRC.

20% ? Really? Americans are, and should be, pissed off at 8% to 10%

20% in America would cause a revolt that would ne unstoppable. Those in the U.K. are too easy going apparently....

We work to provide for our family, not just the governments families, although at times it seems that we do provide more for them than our own.

Reckon the averge UK worker gives 65% to the government.

That's a bit of an exaggeration. If you investigate a little you will find that the taxation of income in the UK is amongst the lowest in western Europe just as the UK VAT rate is also below the average in the E.U.

Sophon

Not an exaggeration. In the UK the Government reduced income tax which could be reduced by claiming various allowances and slapped it on National Insurance which cannot be avoided. So the effective combined rate plus indirect taxation(VAT etc) for someone earning over B38,000/year is 60-65%. If National Insurance had to be paid for out of income tax, the basic rate of income tax would have to be 45% due to all the tax allowances. Then there is VAT at 20%, tax on dividends, bank interest and capital gains tax on the money you have already paid tax on.

[Pib]

The U.S. don't use the VAT system...but basically apply a city, county, and/or state sales tax to generate revenue for the local and state governments. The total sales tax varies greatly across the 50 states. Usually, a state with no "personal" income tax" will have a higher state sales tax. Just a different approach in collecting needed tax revenue.

Now a couple of taxes similar to VAT which Thailand are heavy into are "import" and "excise" taxes which are applied/built into the price before being sold to the customer...then VAT is added on. The majority of Thailand total tax revenue comes from import, excise, and VAT tax compared to personal income taxes since the majority of folks in Thailand do not file/pay personal income taxes.

Tax structures can come in so many varieties.

Edited September 28, 2014 by Pib

[Liquorice]

Can anyone confirm that VAT in Thailand is inclusive of the price displayed.

I've twice had the experience of buying furniture goods, but then at the point of sale 7% VAT was added to the displayed price.

I declined the purchases and went elsewhere.

The worst case scenario was at an electrical/furniture store which I'd purchased many items from before. Always paid the price displayed, no problems.

I then moved to a house and required a lot more furniture, fridge, cooker, washing machine etc.

The total cost was around 33,000 baht but because the owner by now knew me, gave me a 10% discount.

At the till, her sister tried to add on 7% tax plus a 600 baht debit card charge, both of which had never been requested with previous purchases.

The one thing that gets my goat, is when they try to charge more because I'm a farang.

I felt this was the case and even as the lads had started to load a truck, I declined and walked out in disgust.

If prices do not include VAT, shouldn't the prices clearly state + VAT, or is it a guessing system in Thailand.

[Sophon]

20% ? Really? Americans are, and should be, pissed off at 8% to 10%

20% in America would cause a revolt that would ne unstoppable. Those in the U.K. are too easy going apparently....

We work to provide for our family, not just the governments families, although at times it seems that we do provide more for them than our own.

Reckon the averge UK worker gives 65% to the government.

That's a bit of an exaggeration. If you investigate a little you will find that the taxation of income in the UK is amongst the lowest in western Europe just as the UK VAT rate is also below the average in the E.U.

Sophon

Not an exaggeration. In the UK the Government reduced income tax which could be reduced by claiming various allowances and slapped it on National Insurance which cannot be avoided. So the effective combined rate plus indirect taxation(VAT etc) for someone earning over B38,000/year is 60-65%. If National Insurance had to be paid for out of income tax, the basic rate of income tax would have to be 45% due to all the tax allowances. Then there is VAT at 20%, tax on dividends, bank interest and capital gains tax on the money you have already paid tax on.

I assume that you mean someone earning over GBP 38,000 per year? If so, does the average UK worker make more than that (as the claim was that an average U.K. worker is paying 65% in taxes)?

None of what you say is very different to how taxation works in most of Europe other than National insurance is often included in the income tax. And the U.K. tax rates are still lower than those of many other countries, plus the VAT is lower especially on every day costs like food. Yet, it seems that people from other countries don't complain nearly as much as Brits.

Sophon

[Pib]

Can anyone confirm that VAT in Thailand is inclusive of the price displayed.

I've twice had the experience of buying furniture goods, but then at the point of sale 7% VAT was added to the displayed price.

I declined the purchases and went elsewhere.

The worst case scenario was at an electrical/furniture store which I'd purchased many items from before. Always paid the price displayed, no problems.

I then moved to a house and required a lot more furniture, fridge, cooker, washing machine etc.

The total cost was around 33,000 baht but because the owner by now knew me, gave me a 10% discount.

At the till, her sister tried to add on 7% tax plus a 600 baht debit card charge, both of which had never been requested with previous purchases.

The one thing that gets my goat, is when they try to charge more because I'm a farang.

I felt this was the case and even as the lads had started to load a truck, I declined and walked out in disgust.

If prices do not include VAT, shouldn't the prices clearly state + VAT, or is it a guessing system in Thailand.

From my experience over the last half dozen years, the great majority of the time (but not always) it is included in product prices (i.e., something physical you can touch) unless specially noted as "excluding" VAT which seems to be more typical for "services" provided (e.g., satellite TV/cell phone plans, etc). But for "products" the final price almost always (but not always) includes VAT. And many times when you get the receipt for an item, you may see the total and advertised item price says Bt1,000 price broken out like Bt935 plus 7% VAT at Bt65.. .can kinda make you think they first decided on what they wanted the advertised price to be (say Bt1000) and then they reverse engineered the breakout between the VAT and product price. Now what the Thai law specifically says about how the VAT must be displayed/advertised as part of the total price I couldn't say.

Personally I prefer the VAT to be reflected in the final price...less calculating for my brain to determine if this is a price I want to pay for the product/service but if I'm unsure I'll read closer, ask the sales rep, get clarification, etc., before buying.

[Soiyamoto]

Kiss food restaurant pattaya 2nd rd the only place i eat where you pay 7% vat