Yet Another Expot Question

[El_D]

Sorry! I tried to edit the topic title but couldn't. This is an ExpoRt Question, not an Expot Question :0.

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I'm confused.

Am I required to pay the gov't the 7%VAT of sales I make to foreign customers?

I've read that once I qualify for certain conditions as an exporter, that I can apply for a VAT refund.

Is this a refund of (1) the VAT I paid my supplier, or a refund of (2) the VAT I charged my foreign customer.

I'm inclined to think it would be option (1) as that makes sense to me.

Any clarification would be appreciated.

[jayrockwell]

You (your company) don't charge VAT on your exports.

You'll need to charge VAT on any sales you make in Thailand.

You can claim back VAT on all your purchases (is your supplier VAT registered?)

It generally takes a few months for your VAT refund to be approved and paid-out.

J

[p_brownstone]

You can claim back VAT on all your purchases (is your supplier VAT registered?)

It generally takes a few months for your VAT refund to be approved and paid-out.

J

And, particularly if the amount you are reclaiming is substantial, be prepared for a close scrutiny by the Revenue Department of all aspects of the transaction AND your Company AND your own status in Thailand - make sure your Company Registration, VAT Registration, Suppliers Invoices, Export Documentation, your Visa and Work Permit etc. etc. are in perfect order; they definitely do NOT like to refund VAT and will look for any excuse not to approve it, particularly if you are a small Export only business.

If there is anything in the least way wrong with any of the above items you may want to consider simply writing off the VAT you paid to your Thai supplier as part of your Cost of Goods sold rather than go through the hassle - assuming your Margin can stand the hit of course.

One way around this is to sell Goods in Thailand too; the VAT you charge your local Customers should be paid monthly to the Revenue Department, however you can offset this against the VAT which the RD should refund to you on your Export Sales and carry forward the balance you are still owed by the RD to offset against future Local sales VAT.