VAT refunds on large purchases and bank interest tax refunds

[Scouse123]

Hi,

Living on a retirement extension, I like many others, reclaim the 15% tax charged on bank interest once a year. My other half is saying that I can claim VAT charges etc on the car and even on appliances I have purchased as I am not a resident, .....only a long stay tourist???

Surely, this cannot be correct as I considered all these things as living expenses but I am certainly going to ask TV members as I have never heard of anything like this.

Can somebody clarify please the correct position as I believe this is wishful thinking.

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[Peterw42]

An interesting question, I know tourists can claim and you do it as you leave, maybe it would involve leaving the country. Hopefully someone knows the answer.

[meatboy]

only if your a tourist. or have a business and be vat.registered.

[Scouse123]

49 minutes ago, meatboy said:

only if your a tourist. or have a business and be vat.registered.

 

Meatboy,

 

I don't see the difference.

 

By refunding the tax on bank interest on retirement extensions they are acknowledging you are non-resident, so therefore a tourist albeit long stay and/or multiple entry. That is why I understand they refund you the tax on interest.

 

So why then, for example, do they not refund VAT to us on a car purchase if we are in fact, only long term tourists on extension and not residents?

 

I am only asking a genuine question as I would really like to know.

 

I have seen tourists at the airport getting VAT reclaims but they I believe, are showing their receipts ( and goods purchased???? ) to the authorities at the departure point at the VAT reclaim counter in the airport.These are in effect, short term holiday tourists.

 

Edited January 4, 2017 by Scouse123
spelling

[meatboy]

14 minutes ago, Scouse123 said:

 

Meatboy,

 

I don't see the difference.

 

By refunding the tax on bank interest on retirement extensions they are acknowledging you are non-resident, so therefore a tourist albeit long stay and/or multiple entry. That is why I understand they refund you the tax on interest.

 

So why then, for example, do they not refund VAT to us on a car purchase if we are in fact, only long term tourists on extension and not residents?

 

I am only asking a genuine question as I would really like to know.

 

I have seen tourists at the airport getting VAT reclaims but they I believe, are showing their receipts ( and goods purchased???? ) to the authorities at the departure point at the VAT reclaim counter in the airport.These are in effect, short term holiday tourists.

 

its no different to the uk.you cant claim vat on goods or anything else.

i had already made enquire's. i used to do vat returns for independant business's in the uk. so i had a good idea about thailand.

regarding the refund of tax witheld here,its the same as the uk.you have a personel allowance where your income is under 150,000bht.

any income above that you will be taxed.

[Peterw42]

2 hours ago, meatboy said:

its no different to the uk.you cant claim vat on goods or anything else.

i had already made enquire's. i used to do vat returns for independant business's in the uk. so i had a good idea about thailand.

regarding the refund of tax witheld here,its the same as the uk.you have a personel allowance where your income is under 150,000bht.

any income above that you will be taxed.

 

Are you saying tourist/non resident cannot claim back VAT ?

 

[KamnanT]

I think you'll find that the VAT Refund for Tourists scheme applies only to those who (i) entered Thailand visa exempt or with a tourist visa and (ii) depart via one of the designated airports within 60 days of purchasing the goods and take the goods with them.  Goods that remain in Thailand (like your car) are not eligible.

[CMBob]

There are rules as to who can and can't claim a VAT refund.  I know that one must be within Thailand less than 180 days per year to qualify, the refund must be claimed within 60 days of the purchase date, and the refund only applies to things you bought in shops which are registered VAT refund shops (i.e., those places that prominently display a sign about it?).  I believe there are also other rules (google it, you might learn something) but the main idea behind it is to encourage more short-time tourists and not to benefit expats who live here most of the year.

[glamont002]

They are not  simply "refunding" the bank interest. What you are doing is filing a Thai income tax return declaring the interest in which case you get a credit for the 15% tax withheld. If your taxable income is less than 150,000 Baht the personal tax rate is zero thus you get a full refund. But if your interest income is more than 180,000 (personal exemption is 30,000) then you are subject to the graduated tax rates and will not get all the withholding back.

 

VAT refunds are for tourists who take the goods out of Thailand and must be claimed at the airport on departure. You need the VAT invoice and show the goods to the tax officer to get the refund of VAT. So if you some how can get your car into the terminal and on the plane you might get a refund of the VAT (555+)

[blackcab]

If you claim a personal VAT refund you have to take the goods out of the country. It's not for consumable items or for things you leave in Thailand.

 

If foreigners could do that then every Thai you met would be asking you to buy stuff for them at a 7 per cent discount.

[Scouse123]

Thanks a lot guys. You have explained it clearly to me.


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[Pib]

Thailand Revenue Dept Rules Regarding VAT Refund

http://vrtweb.rd.go.th/index.php/en/component/vrt/main/105?layout=detail

 

Suvarnbhumi Airport Rules Regarding VAT Refund

http://www.suvarnabhumiairport.com/en/1387-vat-refunds

 

 

[CMBob]

41 minutes ago, glamont002 said:

They are not  simply "refunding" the bank interest. What you are doing is filing a Thai income tax return declaring the interest in which case you get a credit for the 15% tax withheld.

 

 I never realized that the form (ภ.ง.ด. 90) I file online to get the withheld bank interest refunded is actually a Thai income tax return....but obviously (after seeing your comment) it really is.  Thanks for the info.  

[sometimewoodworker]

16 hours ago, KamnanT said:

I think you'll find that the VAT Refund for Tourists scheme applies only to those who (i) entered Thailand visa exempt or with a tourist visa and (ii) depart via one of the designated airports within 60 days of purchasing the goods and take the goods with them.  Goods that remain in Thailand (like your car) are not eligible.

Not quite. Part (I) The visa doesn't matter part (ii) is correct.

 

I've received a VAT refund on a non-O

Edited January 5, 2017 by sometimewoodworker

[sometimewoodworker]

16 hours ago, CMBob said:

There are rules as to who can and can't claim a VAT refund.  I know that one must be within Thailand less than 180 days per year to qualify, the refund must be claimed within 60 days of the purchase date, and the refund only applies to things you bought in shops which are registered VAT refund shops (i.e., those places that prominently display a sign about it?).  I believe there are also other rules (google it, you might learn something) but the main idea behind it is to encourage more short-time tourists and not to benefit expats who live here most of the year.

No 180 day rule

[KamnanT]

15 hours ago, sometimewoodworker said:

Not quite. Part (I) The visa doesn't matter part (ii) is correct.

 

I've received a VAT refund on a non-O

 

My experience has been different.  I have been refused a VAT refund at Suvarnabhumi because, according to the refund staff (not the customs staff), my annual extension of stay proved that I was "not a tourist".  And fair enough - I do reside in Thailand and the scheme is not intended for residents of Thailand.

[sometimewoodworker]

17 hours ago, KamnanT said:

 

My experience has been different.  I have been refused a VAT refund at Suvarnabhumi because, according to the refund staff (not the customs staff), my annual extension of stay proved that I was "not a tourist".  And fair enough - I do reside in Thailand and the scheme is not intended for residents of Thailand.

As I said the type of visa you have doesn't make any difference.

 

And of course you were refused because you do not have a visa.

 

if you have a visa then the within 60 days of departure rule applies. Suvarnabhumi doesn't care about the type.  

[4MyEgo]

On 05/01/2017 at 11:36 AM, sometimewoodworker said:

Not quite. Part (I) The visa doesn't matter part (ii) is correct.

 

I've received a VAT refund on a non-O

Technically speaking you are correct as you left within the period of the Non-O visa, however if you decided to extend your stay in Thailand based on an extension of stay being married to a Thai, you would not be entitled to the VAT.

 

The VAT is predominantly there for tourists, if anyone is on an extension of stay, be it on the grounds of retirement or marriage to a Thai, then it doesn't apply to them, as they are deemed as non residents, see point 6 below.

 

Qualifications for tourists

1. Non-Thai citizens
2. Not a pilot or cabin crews of any airlines departing from Thailand
3. Departing Thailand from an international airport
4. Purchasing goods from shops that participate in the VAT Refund for Tourists' scheme. Look for VAT refund for tourist sign displaying at the stores.  
5. Each purchase must have a value of at least 2,000 Baht (including VAT).
6. Non-residents in Thailand

I am currently weighing up whether to purchase a new laptop now and getting no VAT refund for my troubles before I depart on a short break, or whether I wait to claim back the 10% GST back in Australia if I purchase it their, if I do buy it their, I might have to watch out that I don't pay tax here in Thailand when I re-enter, as hear they are cracking down on people, my wife tells me everyone, however I believe its Thai's only.

[jphasia]

Technically speaking you are correct as you left within the period of the Non-O visa, however if you decided to extend your stay in Thailand based on an extension of stay being married to a Thai, you would not be entitled to the VAT.
 
The VAT is predominantly there for tourists, if anyone is on an extension of stay, be it on the grounds of retirement or marriage to a Thai, then it doesn't apply to them, as they are deemed as non residents, see point 6 below.
 

Qualifications for tourists

1. Non-Thai citizens
2. Not a pilot or cabin crews of any airlines departing from Thailand
3. Departing Thailand from an international airport
4. Purchasing goods from shops that participate in the VAT Refund for Tourists' scheme. Look for VAT refund for tourist sign displaying at the stores.  
5. Each purchase must have a value of at least 2,000 Baht (including VAT).
6. Non-residents in Thailand

I am currently weighing up whether to purchase a new laptop now and getting no VAT refund for my troubles before I depart on a short break, or whether I wait to claim back the 10% GST back in Australia if I purchase it their, if I do buy it their, I might have to watch out that I don't pay tax here in Thailand when I re-enter, as hear they are cracking down on people, my wife tells me everyone, however I believe its Thai's only.

And it work if you are on Non O 1 year multiple entry ( not extension). I am claiming VAT at airport sometime and no question asked.
Last time was last month when i bought a camera which cost me around 100,000 bahts in Phuket. Few days later, I left to Myanmar and got about 6,000 bahts refund at the airport. I presented the VAT refund form that I filled in the shop. They asked to see the camera, check the serial number as it was in the original box and that's it.
A week later I came back to Thailand with the camera.


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[sometimewoodworker]

20 hours ago, 4MyEgo said:

Technically speaking you are correct as you left within the period of the Non-O visa, however if you decided to extend your stay in Thailand based on an extension of stay being married to a Thai, you would not be entitled to the VAT.

 

The VAT is predominantly there for tourists, if anyone is on an extension of stay, be it on the grounds of retirement or marriage to a Thai, then it doesn't apply to them, as they are deemed as non residents, see point 6 below.

 

Qualifications for tourists

1. Non-Thai citizens
2. Not a pilot or cabin crews of any airlines departing from Thailand
3. Departing Thailand from an international airport
4. Purchasing goods from shops that participate in the VAT Refund for Tourists' scheme. Look for VAT refund for tourist sign displaying at the stores.  
5. Each purchase must have a value of at least 2,000 Baht (including VAT).
6. Non-residents in Thailand

I am currently weighing up whether to purchase a new laptop now and getting no VAT refund for my troubles before I depart on a short break, or whether I wait to claim back the 10% GST back in Australia if I purchase it their, if I do buy it their, I might have to watch out that I don't pay tax here in Thailand when I re-enter, as hear they are cracking down on people, my wife tells me everyone, however I believe its Thai's only.

If the value is under $20,000 you do not need to declare it or bother.

 

the main crackdown is targeting buyers of lots of brand name goods for resale 

[4MyEgo]

4 hours ago, sometimewoodworker said:

If the value is under $20,000 you do not need to declare it or bother.

 

the main crackdown is targeting buyers of lots of brand name goods for resale 

Under 5. It states:

 

4 hours ago, sometimewoodworker said:

Each purchase must have a value of at least 2,000 Baht (including VAT)

I fail to see where this $20,000 amount comes from under your post.