Juslaws & Consult advises that any company conducting business in Thailand with a gross monthly income of at least THB 300,000 or yearly income of THB 1,800,000 should register under the Thai Value Added Tax (VAT) system if its goods or services are subject to VAT. VAT registration is also a prerequisite if you intend to hire a foreigner in your company, as one of the major requirements for a Non-immigrant Visa and Work Permit is the submission of tax payment documents from the company. Therefore, whether you are a foreigner or plan to hire one, it is advisable to consult with an accounting firm or professional like us regarding VAT Tax (Thailand) to assess your information and situation accurately.
There are still exemptions to the VAT system as mentioned on the Revenue Department's website.
As mandated by the Revenue Department of Thailand, any individual or entity liable for VAT in Thailand must undergo tax registration. They are required to register as a VAT registered person or entity (Form VAT 01) and obtain a tax identification number before commencing business operations, providing services, or selling goods, or within 30 days after their income reaches the threshold. The VAT registrant must submit the registration application to the Area Revenue Offices if the business is located in Bangkok, or to the Area Revenue Branch Offices if it is located elsewhere. If taxpayers have multiple branches, a registration application must be submitted to the Area Revenue Branch Office where the headquarters is located.
The Revenue Department mandates that VAT returns be filed on a monthly basis. At Juslaws & Consult, our Accounting and Auditing department provides this monthly service for clients, which includes calculating the amount of Value Added Tax payable. The monthly payable amount is essentially the VAT collected by the company minus the VAT paid to others. Value Added Tax returns must be submitted to the Revenue Department by the 15th of the following month. Once a company is registered for Value Added Tax, it must file monthly returns even if it had no income during that month.
Before filing the monthly Value Added Tax (VAT) return, our accountants prepare two reports: one for output tax (VAT) and one for input tax (VAT). If the output VAT amount exceeds the input VAT, the company is obligated to remit the difference to the Revenue Department. This indicates that the amount of Value Added Tax collected from customers is greater than the amount of Value Added Tax paid to suppliers by the company. Conversely, if the output VAT amount is less than the input VAT, the company can offset the output Value Added Tax due in the following month.
It is also possible to apply for a VAT refund; however, the normal practice is to apply the difference to offset the next remittance. A fine is imposed for failure to submit a report or for late filing. The amount of the fine is twice the amount of the tax owed, plus a penalty of 1.5 percent interest on the unpaid amount.
Juslaws & Consult's lawyers possess extensive knowledge of Value Added Tax (VAT) regulations in Thailand and have significant experience in providing tax services to businesses in the region. We have successfully managed tax matters for large corporations and Thai limited companies, and our service fees are highly competitive. Client satisfaction is paramount to us, and we are confident that our tax services have met and exceeded the expectations of our clients.
We offer consultations on various tax services, including tax credit, excise tax, corporate income tax, specific business tax, indirect tax, tax invoices, and tax liability in Thailand. We are committed to providing comprehensive assistance tailored to your specific needs. If you require further information on any of our Taxation services, please do not hesitate to contact us. We are here to help.