Invoice & VAT

[Bagwain]

I recently had an experience with my accountant that included an invoice dated in August but moneys paid in early September.

It is claimed that the VAT was to be paid for August and not September as I believed. I paid for the equipment in September when I received payment. So I was hoping to claim my VAT paid against the equipment I sold but invoiced in August but receipted in September.

 

This leaves me very confused. Example - if I was to produce an invoice for 1 million baht in Example "August" but I was not paid til example "October" would I still be liable to pay VAT for August even though I have received no payment?

 

I also have been told that I need to set up doing via P.O or quotes.

 

Thanks 

[robblok]

I know for a fact that in the Netherlands its about when the invoice is dated not if its paid or not paid. (Tax accountant myself). As far as I can recall its the same in Thailand its all about invoice date so yes you would be liable to pay VAT before you receive the money. 

[blackcab]

VAT is calculated from the earliest of:

 

• the time of delivery; or
• when ownership of goods is transferred; or
• a payment is made; or
• a tax invoice is issued.

 

http://www.rd.go.th/publish/6043.0.html

[p_brownstone]

1 hour ago, blackcab said:

VAT is calculated from the earliest of:

 

• the time of delivery; or
• when ownership of goods is transferred; or
• a payment is made; or
• a tax invoice is issued.

 

http://www.rd.go.th/publish/6043.0.html

 

Exactly.

 

The Thai Revenue Department is not at all interested in when - or even IF - you get paid; if you Invoiced your Customer in August you must pay the VAT shown on your Invoice / Tax Invoice (ใบแจ้งหนี้ / ใบกำกับภาษี) to the Revenue Department by the 15th of the following month.

 

You can give your Customer 90 Days Credit, a Year Credit or even not get paid at all - that's your problem; the Revenue Departments' clear rules state that the date of the Invoice is what matters.

 

I'm not sure what you mean when you say " I also have been told that I need to set up doing via P.O or quotes. ", neither has anything to do with payment of VAT.

 

Patrick