Any person or entity that regularly supplies goods or provides services in Thailand, and has an annual turnover exceeding THB 1.8 million, is subject to VAT in Thailand. A supplier of services to an offshore entity will also have to pay VAT if the services are used in Thailand. VAT also applies to any import of goods or services. Suppliers of goods and services collect output VAT. Purchasers of goods and services pay input VAT. Input VAT is deducted from output VAT to determine VAT liability.
VAT is currently levied at a rate of 7% on gross receipts, although a zero rate applies to exported goods and services that are used abroad. Certain businesses are exempt from VAT.
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.
Each month Mazars will:
- Review all output tax invoices issued by the company to ensure that they contain all particulars as required by the Revenue Code.
- Review all input tax invoices to identify whether they are claimable under the Revenue Code or not.
- Reconcile the input VAT to be claimed with the amount that has been recorded in the general ledger of the accounting system.
- Prepare the input and output VAT reports.
- Review the overseas payments for imports of services on which VAT would apply on a reverse charge basis.
Mazars will prepare and submit the VAT returns and work with the Company to coordinate the necessary payments within the required deadline.