VAT Refund

[MintyJ88]

Hi, 

 

I am starting out a business in Thailand. I will be getting my stocks oversea and send to my customer straight in Thailand. 

 

How does the VAT system in Thailand works? Will the item be taxable? And can I claim back the VAT amount?

 

TIA!

[Rc2702]

This may answer your question

http://www.vatlive.com/country-guides/asia/thailand/

 

Short answer. Same system as EU

 

If your correct in the process that goods will go direct to client once entering thailand then unless you quote them inclusive of D&T I believe the reciever (client) will be liable for the D&T.

[p_brownstone]

V.A.T. on Imports can only be "reclaimed" by the Company which Imported the item, and only under circumstances where the Importer "adds value" to the Imported item then sells it on to someone else, with added V.A.T. based on the Selling Price.

 

To make it easy, let's imagine you Import, via your Company, an item which is not liable for Import Duty and the C.I.F. price (Cost + Insurance + Freight) is Baht 10,000.- ; on Import your Company would have to pay V.A.T. (and get an official receipt) to the Revenue Department - via the Customs Department - totaling Baht 700.- (7%) .

 

Your Company then sells the item to another Company or individual for - say - Baht 12,000.- ; you would have to add V.A.T. (7%) of Baht 840.- on your Invoice to the Customer, that V.A.T. must be paid to the Revenue Department, by your Company, every month (before the 15th of the month following the transaction.). However your Company has already paid Baht 700.- to the Revenue Department so you are only required to pay the difference (840 - 700 = Baht 140)

 

If you are sending goods directly to your Customer in Thailand however he / she will be responsible for paying all Import Duties and V.A.T.. Since your Company is not involved in the actual Importation you cannot reclaim V.A.T.. (Obviously Import Duties are not re-claimable by anyone.).

 

Patrick

Edited May 11, 2017 by p_brownstone