Value Added TAX in Thailand

Tax invoice

The invoice (including debit and credit notes issued with reference to such invoices) must, as a minimum, contain at least the following:

  • The words “tax invoice” in a prominent place;

  • The name, address and taxpayer identification number of the VAT registrant issuing the tax invoice;

  • The name and address of the purchaser of the goods or service;

  • Serial number of tax invoice;

  • Description, type, category, quantity and value of goods or services;

  • The amount of VAT calculated on the value of goods or services clearly separated from the value of goods or services; 

  • The date of issuance;

  • Tax identification number of the purchaser of the goods or services;

  • The wording “Head Office” or “Branch No. …” which is the seller’s place of business from which such tax invoice, debit or credit note is issued; and

  • The wording “Head Office” or “Branch No. ….” which is the purchaser’s place of business to which such goods or services are sold or provided.

Invoices raised in currencies other than Thai Baht require the presentation of both currencies on the face of the invoice and must indicate the exchange rate used in the conversion. It is the amount in Thai Baht which is reported to the Revenue Department.

VAT paid (‘input VAT’) is offset against the VAT charged on sales (‘output VAT’). Should input VAT exceed output VAT then a refund can be claimed from the Revenue Department. This is either in cash or as a credit against future output VAT.

A tax payer that has only zero-rated income will have the option to reclaim the input VAT.

Value Added Tax (VAT) is an indirect tax calculated on the sale of goods or services in Thailand.
 

Exemptions: Companies with a turnover less than 1.8 million baht

Calculation : VAT Payable = Output Tax (sales VAT) minus Input Tax (purchase VAT)
 

Tax                                                                                                     Rate%

General Thai rate                                                                                                          7%

Imported services or goods                                                                                         7%

Exported services or goods                                                                                         0%

Sales of services or goods to state-owned                                                                  0%

entities or government    

                   

Sales of goods from companies located in                                                                  0%
Free Trade Zones

Submission to the Revenue Department

The VAT returns, known as a PP 36 and a PP 30, are submitted to the Revenue Department (‘RD’) on or before the 7th and 15th day respectively of the following month in which the payment was made and the tax invoice was raised. E.g. a tax invoice dated 25th July 2017 will be included on the VAT return submitted to the RD by the 15th August 2017.

Late submission

The fine for late submission is:

  • 300 baht within the first 7 days

  • 500 baht after 7 days

 

The penalty for late submission is up to twice the amount of tax due that month. There is also a surcharge of 1.5 percent of the tax payable per month.

For more information, please visit the Revenue Department website. : Click ==>Revenue Department website