1. Taxable person
1.1. Business person
1.1.1. who
1.1.1.1. Natural person
1.1.1.1.1. including an estate
1.1.1.2. Non-juristic person
1.1.1.2.1. non-registered entities
1.1.1.3. Juristic person
1.1.1.3.1. legal entities
1.1.2. กิจการนี้ทำอะไร
1.1.2.1. Selling Goods
1.1.2.1.1. Sale[77/1(8)]
1.1.2.1.2. Goods[77/1(9)]
1.1.2.2. Proving service
1.1.2.2.1. Services [77/1(10)]
1.1.2.2.2. Intangible property
1.1.2.2.3. Electronic platform [77/1(10/2)]
1.1.3. กิจการเกิดขึ้นที่
1.1.3.1. Thailand
1.1.3.1.1. Sale of Goods
1.1.3.1.2. Proving services
1.2. Person Prescribed by Law [82/1]
1.2.1. 1) The business person residing abroad,habitually selling goods or providing sevices within Thailand
1.2.1.1. having an agent in Thailand
1.2.1.2. The taxable person is the agent
1.2.2. 2) The business person selling goods/providing services to the UN
1.2.2.1. special agencies of the UN
1.2.2.2. Embassy
1.2.2.3. Consulate office
1.2.3. 3) The business person importing goods classified in the duty exemption category
1.2.3.1. such as goods are subject to duty(under the law on customs tariff
1.2.3.2. The taxable person
1.2.3.2.1. The liable person under the law on customs tariff
1.2.3.2.2. consignee(recipient) if goods are transferred
1.2.4. 4) The business person merging business(the merger)
1.2.4.1. The taxable person
1.2.4.1.1. The merger
1.2.4.1.2. The new business person (in case become new business)
1.2.5. 5) The business person doing the transfer of business
1.2.5.1. The taxable person
1.2.5.1.1. The transferor
1.2.5.1.2. The Trensferee
1.3. Importer [77/1(11)]
1.3.1. A business person who
1.3.1.1. Imports goods into Thailand
1.3.1.2. Taking goods subject to import duties
1.3.1.3. Taking goods exempt from import duties
1.3.2. out of Custom Free Zones,but not for export
2. General Info
2.1. Assessment tax
2.2. ในไทยเป็น consumption type vat
3. Tax Liability (Tax Point)
3.1. Sale of goods[78]
3.1.1. (1) The tax liability shall take place at the time of delivery of goods,
3.1.1.1. except whe the following events take place before:n
3.1.1.1.1. (a) transfer of the ownership of the goods.
3.1.1.1.2. (b) payment received for goods sold.
3.1.1.1.3. (c) issuance of tax invoice.
3.1.2. (2) Hire purchase and installment sale
3.1.2.1. the tax liability shall take place at the time each periodic payment is due,
3.1.2.1.1. except when the following events take place before:
3.1.3. (3) Sale of goods through an agent and the goods have been delivered to the agent
3.1.3.1. the tax liability shall take place at the time of delivery of goods (agent to the purchaser),
3.1.3.1.1. except when the following events take place before:
3.1.4. (4) Export of goods out of Thailand:
3.1.4.1. (a) Subject to export duty:
3.1.4.1.1. at the time of payment of export duty, placing security, or providing a guarantee. Not subject to or exempt from export duty: on the date of issuance of export declaration document (under the Customs law).
3.1.4.2. (b) Export of goods by bringing the goods into a Customs free zone under Section 77/1(14)(a):
3.1.4.2.1. on the date the goods are taken into the Customs Free zone.
3.1.4.3. (c) Export of goods stored in the bonded warehouse:
3.1.4.3.1. at the time when the liability under the Customs law takes place.
3.1.4.4. (d) Sale of goods according to 82/1 (2):
3.1.4.4.1. transfer of the ownership of the goods.
3.2. Provision of services – 78/1
3.2.1. (1) The tax liability shall take place at the time of receiving payment of services performed,
3.2.1.1. except when the following events take place before:
3.2.1.1.1. (a) issuance of tax invoice
3.2.1.1.2. (b) use of service by its own or other persons before receiving payment
3.2.2. (2) Provision of services under the percentage of completion method
3.2.2.1. the tax liability shall take place at the time of receiving payment for each part of completed services,
3.2.2.1.1. except when the following events take place before:
3.2.3. (3) Provision of services performed in a foreign country and used in Thailand
3.2.3.1. the tax liability shall take place at the time of receiving payment wholly or partly, as the case may be.
3.3. Import – 78/2
3.3.1. (1) Tax liability shall take place,
3.3.1.1. Subject to import duty:
3.3.1.1.1. at the time of payment of import duty, depositing of security, or providing a guarantee.
3.3.1.2. Not subject to or exempt from import duty:
3.3.1.2.1. on the date of issuance of import declaration document (under the Customs law).
3.3.2. (2) Import of goods through Customs Free zone (bring in and take out)
3.3.2.1. the tax liability shall take place on the date of taking the goods out of the zone. *not for export
3.3.3. (3) Import of goods classified in the duty-exemption category and later, such goods are subject to duty (under the law on Customs tariff)
3.3.3.1. the tax liability shall take place at the same time prescribed by the law on Customs tariff.
4. Non Taxable person
4.1. 81/1
4.1.1. A business person considered a small business
4.1.1.1. Taxable persons whose annual turnover does not exceed 1.8 million baht a year
4.1.2. (1) Sales of goods but not for export purposes or provision of services
4.1.2.1. Sales of goods
4.1.2.1.1. a) Sales of agricultural products
4.1.2.1.2. b) Sale of alive or dead animals
4.1.2.1.3. c) Sale of fertilizers
4.1.2.1.4. d)Sale of fish meal and animal feed
4.1.2.1.5. e) Sale of pharmaceutical and chemical products on plants or animal
4.1.2.1.6. f)Sale of newspaper,magazines,schoolbooks
4.1.2.2. Providing services
4.1.2.2.1. (g) Educational services (e.g., public educational institutions, private universities, or private schools) under the law governing.
4.1.2.2.2. (h) Services relating to art and cultural work prescribed by N.DG.VAT.No.11 (e.g., Thai performing arts, music arts, or orchestral arts).
4.1.2.2.3. (i) Professional services – medical, auditing, litigation, and other professional services governed by the law prescribed by N.DG.VAT.No.217 (i.e., tax auditing).
4.1.2.2.4. (j) Medical service of health institutions under the law governing.
4.1.2.2.5. (k) Research or academic services prescribed by N.DG.VAT.No.238
4.1.2.2.6. (l) Library, museum, or zoo.
4.1.2.2.7. (m) Services under the employment contract
4.1.2.2.8. (n) Services for organizing amateur sports.
4.1.2.2.9. (o) Services by public entertainers.
4.1.2.2.10. (p) Domestic transport.
4.1.2.2.11. (q) International transport, excluding by aircraft or ship.
4.1.2.2.12. (r) Rental of immovable property.
4.1.2.3. Special types of business
4.1.2.3.1. (s) Service of local authorities, excluding commercial services.
4.1.2.3.2. (t) Sale of goods/provision of services by a ministry or department.
4.1.2.3.3. (u) Sale of goods/provision of services for the benefit of religions or public charity in Thailand.
4.1.2.3.4. (v) Sale of goods/provision of services prescribed by Royal Decree (e.g., lottery, postage stamp, revenue stamp, etc.).
4.1.3. 2) Import of goods
4.1.3.1. (a) Goods specified under (a) – (f) of (1).
4.1.3.2. (b) Goods exempt from import duty imported into customs free zone.
4.1.3.3. (c) Goods classified into the duty exemption category.
4.1.3.4. (d) Goods imported and sent back abroad under the care of Customs officials.
4.1.4. Out of Scope Business for VAT
4.1.4.1. Sale of goods outside Thailand (flow of goods is outside).
4.1.4.2. Services rendered and used outside Thailand.
4.1.4.3. Activities not considered as a sale of goods or provision of services.
4.1.4.4. Businesses prescribed as a specific business – 77/3, whether it is:
4.1.4.4.1. Subject to Specific Business Tax – 91/2
4.1.4.4.2. Exempt from Specific Business Tax – 91/3
5. Tax Base
5.1. Sale of Goods/Provision of Services
5.1.1. 1) Tax base according to benefits calculable in money terms
5.1.2. 2) Import – CIF
5.1.2.1. The tax base of import of goods – 79/2
5.1.2.1.1. (1) The tax base for the import of goods:
5.1.2.1.2. (2) Goods imported classified in the duty exemption category are also exempt from VAT. If the goods are subject to duty (under the law on Customs tariff) later, the tax base is only the value of goods in condition and quantity as of the date.
5.1.3. 3) Export - FOB
5.2. Exceptional Cases
5.2.1. 1) Zero tax base
5.2.1.1. (1) Giveaway goods
5.2.1.1.1. the value of the goods given away with the sale of goods/ provision of services,
5.2.1.1.2. The value of giveaway goods shall not exceed the value of goods sold/services provided.
5.2.1.2. (2) Distributed goods or prize
5.2.1.2.1. the total value of distributed goods or prizes per day is set by the VAT registrant,
5.2.1.2.2. the distributed goods or prizes shall not exceed the value of goods sold/services provided.
5.2.1.2.3. Example
5.2.1.3. (3) Commission or agency fees
5.2.1.3.1. the value of the service provided to foreign business persons,
5.2.1.3.2. only in the case where the business person sells goods/provides services to purchasers/recipients in that or another foreign country.
5.2.1.4. (4) Goods sold from Customs free zones
5.2.1.4.1. the value of goods sold to any purchaser, which is an importer in Thailand.
5.2.1.5. (5) Imported goods sold from Customs free zones
5.2.1.5.1. the value of goods sold to VAT registrants in Thailand imported by the business person in the Customs free zone.
5.2.1.6. (6) Goods distributed or giveaways as a gift
5.2.1.6.1. only for the goods such as calendars, diaries, or goods of a similar nature,
5.2.1.6.2. gifts or souvenirs with the name, trade name, or trademark of the business person,
5.2.1.6.3. the goods distributed/given away are for general business practices,
5.2.1.6.4. the goods distributed/given away are at a reasonable price/value.
5.2.1.7. (7) Samples
5.2.1.7.1. the value of the samples due to sales promotion.
5.2.1.8. (8) Food and beverages provided to staff or employees
5.2.1.9. (9) Imported goods sold by a VAT registrant to purchasers
5.2.1.10. (10) Uniforms provided by a VAT registrant as an employer to employees
5.2.1.10.1. the quantity of uniforms does not exceed 2 sets per employee per year,
5.2.1.10.2. the quantity of outer coats does not exceed a set per employee per year.
5.2.1.11. (11) Use of goods for a trial period
5.2.1.11.1. the goods are not consumable products
5.2.1.11.2. the goods are for use as a trial for a period of time specified,
5.2.1.11.3. the trial is only for testing the quality or efficiency of the goods,
5.2.1.11.4. the purchaser shall return the goods when the trial is ended.
5.2.2. 2) Tax base according to market price
5.2.2.1. Tax base = Market price 79/3
5.2.2.2. The value of the tax base shall be the market price on the date that tax point arises in the following cases
5.2.2.2.1. (1) Sale of goods/provision of services with no consideration or a consideration lower of market price without a justifiable reason
5.2.2.2.2. (2) The use of goods/services of the business person by their own or other persons, not directly for the business
5.2.2.2.3. (3) The shortage of goods/raw materials from the stock report
5.2.2.2.4. (4) The sales of goods being subject to zero tax rate and the transfer of goods later makes the consignee liable for VAT payment; the tax base is only the value of goods in condition and quantity as of the date
5.2.2.2.5. (5) Any stock and/or business property on the date of dissolution of the business
6. Tax Rate
6.1. VAT Business
6.1.1. 7% rate
6.1.1.1. Normal Tax Rate – 80
6.1.1.1.1. The following businesses shall be subject to VAT;
6.1.2. 0% rate
6.1.2.1. Only certain businesses are subject to a 0% tax rate.
6.1.2.1.1. (1) Export of goods by VAT registrants
6.1.2.1.2. (2) Provision of services performed in Thailand but used in a foreign country
6.1.2.1.3. (3) Provision of international transportation services by aircraft or sea by juristic persons
6.1.2.1.4. (4) Sale of goods/provision of services to ministry, department, local authority, or state enterprises under overseas loan or assistance program – N.DG.VAT.No.28.
6.1.2.1.5. (5) Sale of goods/provision of services to the UN, special agencies of the UN, embassy, and consulate office – N.DG.VAT.No.27
6.1.2.1.6. (6) Sale of goods/provision of services between;
6.1.2.1.7. Zero tax rate vs tax exemption
6.2. Non-VAT Business
6.2.1. No tax rate
6.2.1.1. Exempted businesses
6.2.1.2. Out of scope businesses