Revenue Tax: VAT

Value Added Tax (VAT) has been implemented in Thailand since 1992 replacing Business Tax (BT). The VAT is currently imposed at a rate of 7%, with a few exceptions, such as small entrepreneur whose annual turnover is less than 1.8 million baht. A company must register for Value Added Tax if it is expected that its gross income will exceed 1.8 million baht per annum or within 30 days of the date they reach 1,8 million baht in sales (check for possible changes). Companies registered for VAT must file VAT returns and pay tax (if any) to the local district office monthly, within 15 days from the end of the month which the VAT is to be accounted for (source Thailand revenue department).

Chapter 4

Value Added Tax

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Part 1

General Provisions

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Section 77 Value added tax is an assessment tax.

Section 77/1 In this Chapter, unless the context otherwise requires:

(1) "person" means a natural person, a non-juristic body of persons, or a juristic person;
(2) "natural person" includes an estate;
(3) "non-juristic body of persons" means a non-registered ordinary partnership, non-juristic fund or foundation, and shall include non-juristic private organizations or business carried on by two or more natural persons;
(4) "juristic person" means a company or juristic partnership under Section 39, a government enterprise under Section 2, co-operative and other organization constituting a juristic person under any law;
(5) "business person" means a person selling goods or providing services in the course of his business or profession, and whether or not such actions are for any benefit or a consideration, and whether or not he is a VAT registrant;
(6) "VAT registrant" means a business person registered under Section 85 or 85/1, or temporarily registered under Section 85/3;
(7) "agent" includes a person concluding contracts or responsible for maintaining a stock of goods, securing orders or taking any other actions in the course of business within Thailand on behalf of a business person outside Thailand;
(8) "sale" means disposal, distribution, or transfer of goods whether or not for benefit or a consideration and shall also include:

  • (a)hire purchase contract, installment sale contract which the ownership of goods sold is not transferred on the delivery of goods to the purchaser or contract to sell goods in accordance with the rules or conditions prescribed by the Director-General with the Minister’s approval,
  • (b) delivery of goods to an agent for sale,
  • (c) export of goods out of Thailand,
  • (d) use of goods except for the purpose of a person’s own business in accordance with rules, procedures and conditions prescribed by the Director- General,2
  • (e) shortage of goods in a report of goods and raw material in accordance with Section 87(3) or paragraph 2 of Section 87,
  • (f) inventories or assets held for the purpose of the business on the date of the cessation of business, but excluding such inventories and/or assets held as a result of merger or transfer of business as a going concern which the merged business person or transferee of the business as a going concern shall be liable to pay value added tax in accordance with Section 82/3,
  • (g) other cases as prescribed in Ministerial Regulations;3

(9) "goods" means corporeal or incorporeal property susceptible of having a value and of being appropriated whether or not for sale, use or any purposes, and shall include every imported item;
(10) "service" means any actions in return for consideration which is not sale of goods and shall include services for the purpose of a person’s own business, but excluding:

  • (a) the use of services or goods directly for the purpose of a person’s own business in accordance with rules, procedures and conditions as prescribed by the Director-General,
  • (b) the use of money for benefit by depositing with banks or purchasing bonds or securities,
  • (c) any other actions as prescribed by the Director-General with the Minister’s approval;

(11) "importer" means a business person or other persons undertaking importation;
(12) "import" means bringing goods into Thailand and shall include taking goods, subject to or exempt from import duties under the Customs laws, out of Customs free zones but not for the purpose of exportation;
(13) "exporter" means a person undertaking exportation;
(14) "export" means sending goods out of Thailand to a foreign country and shall include:

  • (a) taking domestic goods from Thailand into customs free zones, however, it is only applicable to goods subject to or exempt from export duties under the Customs laws, in accordance with rules, procedures and conditions prescribed by the Director-General, 6 
  • (b) sale of goods by a duty free shop under the Customs laws to a traveler departing Thailand in accordance with rules, procedures and conditions as prescribed by the Director-General;

(15) "purchase" means receiving transfer of goods or taking delivery of goods sold;
(16) "price" means money, property or any other benefit calculable into money paid or to be paid for sale of goods or provision of services;
(17) "output tax" means value added tax collected or collectible by a registered person from the purchaser of goods or services under paragraph 1 of Section 82/4 and value added tax which a registered person is required to pay on sale of goods under (8) (d), (e), (f), (g) or on provision of services under (10) but excluding tax payable in accordance with Section 82/16;
(18) "input tax" means value added tax collected from a registered person by another registered person in accordance with paragraph 4 of Section 82/4 and shall include

  • (a) value added tax paid by a VAT registrant on the import of goods,
  • (b) value added tax paid by a VAT registrant on being transferred of imported goods classified in duty exemption category under the law on Customs tariff in accordance with Section 82/15,
  • (c) value added tax remitted under Section 83/5, 83/6 and 83/7;

(19) "excise tax" includes liquor taxes, tobacco stamps, playing card stamping fees and other taxes or fees of a similar nature as prescribed by the Royal Decree;
(20) "place of business" means a place where a business person regularly carries on his business and shall include places where manufacture and storage of goods regularly take place.
In a case where a business person does not have a place of business as defined in paragraph 1, a place of residence of the business person shall be deemed to be his place of business, and if a business person has several residences, he shall select one to be his place of business;

(21) "customs free zone" means duty free areas under the Customs law, export processing zone under the law governing the Industrial Estate Authority of Thailand
and import duty exemption areas designated by laws;
(22) "tax invoice" includes abbreviated tax invoice, credit note, debit note, receipt issued by government body on sale by auction or by other means in accordance with Section 83/5 and receipt issued by Revenue Department, Customs Department or Excise Department;
(23) "tax month" means calendar month, except-

  • (a) in a case where business person commencing the business which is subject to value added tax or registering for value added tax in any tax month, the first tax month shall commence on the date of business commencement or value added tax registration, as the case may be, in accordance with Section 81/3 and end on the last day of the tax month, 
  • (b) in a case where a VAT registrant is approved to cancel his value added tax registration, or ceases to carry on business subject to value added tax, or dies and his estate administrator or heir does not file a request to continue the business, or has his registration canceled by the Director-General in any tax month, the last tax month shall end on the date of striking the name of registered person off the value added tax register by the order of Director- General in accordance with Section 85/19,
  • (c) in a case where there exists the Royal Decree making provision for a VAT registrant to file a tax return and pay tax according to taxable periods specified in Section 83/1.

Section 77 bis (2) The following businesses in Thailand shall be subject to value added tax under the provision in this Chapter;

(1) sale of goods or provision of services by a business person,
(2) import of goods by an importer.

Provision of services in Thailand means services performed in Thailand whether or not the services are used in a foreign country or in Thailand. 

Provision of services performed in a foreign country and used in Thailand shall be deemed services performed in Thailand.

Section 77/3 Businesses subject to or exempt from specific business tax under Section 91/2 and 91/3 respectively shall not be subject to value added tax under Chapter 4, except the businesses specified under Section 91/4.

Section 77/4 For the purpose of value added tax examination, the following persons concluding a sale or service contract with a business person shall have the duty to submit a copy of contract or other relevant documents as specified to revenue official at local Amphur office in which the said person resides within the fifteenth day of the month following the month which the contract is concluded.

  1. Ministries, departments or local government authorities shall submit a copy of contract in accordance with category, description and value of such contract as prescribed by the Director-General. 
  2. Other persons as specified by the Director-General with the Minister’s approval shall submit a copy of contract or other relevant documents in accordance with category, description and value of contract or document as prescribed by the Director-General with the Minister’s approval.

Value of contracts under (1) and (2) shall not be less than 500,000 Baht.

Section 77/5 In determining whether the business is sale of goods or provision of services, the Director- General shall have the power to set ruling and such ruling shall be final.

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Part 2

Tax Liability

Section 78 Subject to Section 78/3, value added tax liability for sale of goods shall be in accordance with the following rules:

(1) Tax liability for sale of goods, other than those specified in (2), (3), (4) or (5), shall take place at the time of delivery of goods, except in the case where the following events take place before the delivery of goods the tax liability shall be at the time when such events take place;

  • (a) transfer of ownership of goods, 
  • (b) payment received for goods sold, or 
  • (c) issuance of tax invoice, 

However the tax liability shall take place upon the parts of such event as the case may be;

(2) Tax liability for sale of goods under hire-purchase contract or installment sale contract which the ownership of goods sold is not yet transferred to the purchaser on the delivery, shall take place at the time each periodic payment due, except in the case where the following events take place before each periodic payment due then the tax liability shall be at the time such events take place;

  • (a) payment received for goods sold, or 
  • (b) issuance of tax invoice, however the tax liability shall take place upon parts of such event, as the case may be;

(3) Tax liability for sale of goods through an agent appointed to sell and goods have been delivered to the agent, however, only under agency contract to sell certain categories of goods and in accordance with rules, procedures and conditions prescribed by the Director-General with the Minister’s approval, shall take place at the time of delivery of goods to the purchaser, except in the case where the following events take place before goods delivered to the purchaser, then the tax liability shall be at the time such event take place-

  • (a) an agent transfers the ownership of goods to the purchaser; 
  • (b) an agent receives payments for goods sold; 
  • (c) an agent issues tax invoice; or 
  • (d) goods are used whether by an agent or other persons; 

However the tax liability shall take place upon parts of such event, as the case may be;

(4) Tax liability for export of goods, shall take place as follows-

  • (a) tax liability for export other than those specified in (b) or (c), shall take place at the time of payment of export duty, placing of security, or providing guarantee, except in the case where goods are not subject to or are exempt from export duty as the case may be, then tax liability shall take place on the date of passing an entry under the Customs law; 
  • (b) tax liability for export by way of taking goods into customs free zone in accordance with Section 77/1 (14) (a), shall take place on the date domestic goods taken into the said zone; 
  • (c) tax liability for export of goods stored in bonded warehouse under the customs law, shall be at the time when the liability under the Customs law takes place;

 (5) tax liability for sale of goods subject to value added tax at zero rate under Section 80/1 (5) and subsequently transferred resulting in liability to pay value added tax by a transferee in accordance with Section 82/1 (2), shall take place at the time when the ownership of goods is transferred.

To lessen the burden of tax return filing and tax payment of a VAT registrant from sale of goods to a ministry, department, or local authority, prescribed by Ministerial Regulation, the Director-General, with the Minister’s approval, shall have the power to specify the tax liability indicated in (1), (2) and (3) differently.

Section 78/1 Subject to Section 78/3, tax liability taking place as a result of provision of services shall be in accordance with the following rules-

(1) tax liability for provision of services, other than those stated in (2), (3) and (4), shall take place at the time of receiving payment of services performed, except in the case where the following events take place before receiving the payment, then the tax liability shall be at the time such events take place;

  • (a) issuance of tax invoice; or 
  • (b) use of services whether by himself or other persons; 

However, the tax liability shall take place upon parts of such events, as the case may be,

(2) the tax liability for the provision of services under a contract which a consideration is paid upon part of services performed, shall take place at the time of payment for each part of completed services, except in the case where the following event takes place before receiving payment of each part of services, then the tax liability shall be at the time such events take place-

  • (a) issuance of tax invoice; or 
  • (b) use of services whether by himself or other persons; 

However, the tax liability shall take place upon parts of such events, as the case may be,

(3) all or part of tax liability for provision of services performed in a foreign country and used in Thailand, shall take place at the time the payment is received wholly or partly, as the case may be;

(4) tax liability for the provision of service subject to value added tax at zero rate under Section 80/1 (5) and subsequently transferred resulting in the transferee being required to pay value added tax in accordance with Section 82/1(2), shall take place at the time of receiving payment.

To lessen the burden of tax return filing and tax payment of a VAT registrant from the provision of services to a ministry, department or local authority, under contract and on payment made according to rules, procedures and conditions prescribed by a Ministerial Regulation, the Director-General, with the Minister’s approval, shall have the power to specify the tax liability indicated in (1) and (2) differently.

Section 78/2 Tax liability for import shall be in accordance with the following requirements-

  1. for import other than those under (2), (3), or (4), tax liability shall take place at the time of payment of import duty, depositing of security, or providing guarantee, except in the case where goods are not subject to or exempt from import duty, then tax liability shall be at the time of passing the entry under the Customs law;
  2. for import way of bringing domestic goods into Customs free zone and subsequently taking them out of the zone but not for the export purpose as prescribed in Section 77/1 (12), the tax liability shall take place on the date of taking such goods out of the zone but not for the export purpose; 
  3. for import of overtime goods under the customs law, tax liability shall take place at the time of sale by auction or any other mean by government authority in order to bring the proceeds of the sale to pay taxes, storage fees, removal fees or charges in accordance with the procedures prescribed in the Customs law; 
  4. for import of goods classified in duty-exemption category under the law on Customs tariffs and exempt from value added tax according to Section 81 (2) (c), if subsequently goods are subject to duty under the law on Customs tariffs resulting in the liable person under such law or transferee of goods being liable to value added tax under Section 82/1 (3), the tax liability shall take place at the same time as the liability under the law on Customs tariffs. 

Section 78/3 Tax liability for sale of goods or provision of services in the following cases shall be in accordance with Ministerial Regulations-

  1. sale of incorporeal goods such as rights in patent, goodwill, sale of electric current, sale of goods of a similar nature, or sale of certain goods which the time of delivery cannot be determined precisely because of its nature; 
  2. sale of goods or provision of services through automatic machines which the method of payment is by insertion of money, coins, or notes into a machine or by other mean of a similar nature; 
  3. sale of goods or provision of services which the payment is made by credit cards or by other mean of a similar nature; 
  4. sale of goods under contract to sell goods under Section 77/1 (8) (a); 
  5. sale of goods under Section 77/1 (8) (d), (e), (f) or (g). 

The Ministerial Regulation may prescribe the liability to take place differently according to category of goods or services.

Section 79 Subject to Section 79/1, tax base of sale of goods or provision of services is the total value received or receivable by a business person from sale of goods or provision of services including excise taxes under Section 77/1 if any.

Value of tax base shall include money, property, consideration, service fees or benefits calculable into money term.

Value of tax base shall not include-

  1. discount or allowance given by a VAT registrant at the time of sale of goods or provision of services and expressly shown on the tax invoice issued, in the case of issuing an abbreviated tax invoice in accordance with Section 86/6 or 86/7, the VAT registrant is not required to expressly show such discount or allowance on the abbreviated tax invoice,
  2. rebate or subsidy as prescribed by the Director-General with the Minister’s approval, 
  3. output tax, http://www.samuiforsale.com
  4. consideration of descriptions and conditions prescribed by the Director-General with the Minister’s approval. 

Section 79/1 Tax base of certain sale of goods or provision of services shall be according to the following rules

(1) tax base of export of goods is the F.O.B. price plus excise tax specified under Section 77/1(19), and other taxes and fees as prescribed by Royal Decree but excluding export duty. F.O.B. price is the price of goods at customs station excluding insurance and transport costs from the Customs station to a foreign country;

(2) tax base of the provision of international transport services-

  • (a) in the case of transport of passengers, is the value of transport fares, fees and any benefits collected in Thailand prior to deduction of any expenses arisen from such transport of passengers; 
  • (b) in the case of transport of goods, is the value of freight charges, fees, and any benefits collected in or outside Thailand prior to deduction of any expenses arisen from such transport of goods out of Thailand;

(3) tax base of certain sale of goods or provision of services other than those under (1) or (2) shall be in accordance with Royal Decree.

Section 79/2 Tax base of import of goods shall be according to the following rules.

Tax base of import of goods is the C.I.F. price plus import duty, excise tax under Section 77/1 (19), special fees under the Investment Promotion law and any other fees as prescribed by Royal Decree.

In a case where an importer is granted exemption or reduction of import duty under the law on custom tariff or other laws, the exempted or reduced import duty shall be included in the value of tax base.

C.I.F. price is the price of goods plus insurance and transport costs to the customs station of importation except:

  • (a) in the case where the Director-General of the Customs Department announces that the market price of certain types of goods are subject to duty on average price under the law on Custom tariff, such price shall be deemed the price of goods in the calculation of C.I.F. price, 
  • (b) in the case where the customs official assesses the price for the purpose of payment of duty under the law on Customs, such price shall be deemed the price of goods in the calculation of C.I.F. price; 

tax base of import of goods classified in duty exemption category under the law on Customs tariff and exempt from value added tax in accordance with Section 81(2)(C), if subsequently such goods are subject to duty under the law on Customs tariff resulting in the liable person under such law or transferee of goods to be liable to value added tax according to Section 81/1 (3), the tax base of such goods is the value of goods in condition and quantity as on the date of taking place of tax liability in accordance with Section 78/2(4).

Section 79/3 In calculating tax base of sale of goods or provision of services in accordance with Section 79, the value of tax base at the time tax liability taking place shall be taken into the calculation, except in the following cases-

  1. for sale of goods or provision of services is not for a consideration, or for a consideration lower than market price without reasonable cause, the value of tax base shall be the market price of goods or services on the date tax liability takes place; 
  2. for sale of goods or provision of services in the case where a business person using goods or services whether by himself or other persons not directly for the purpose of a business carried on by him as specified in Section 77/1 (8) (d), (10), the tax base shall be the market price of goods or services on the date the tax liability takes place. 
  3. for sale of goods under Section 77/1 (8) (e) by way of shortage of goods in a report of goods and raw material in accordance with Section 87 (3) or paragraph 2 of Section 87, the tax base shall be the market price of goods or services on the date the tax liability takes place; 
  4. for sale of goods which subject to value added tax at the zero rate under Section 80/1 (5) and subsequently transferred resulting in liability to pay value added tax by a transferee in accordance with Section 82/1 (2), the tax base shall be the market price of goods in condition and quantity as on the date the tax liability takes place; 
  5. for sale of goods in the case where business person holds inventories and/or assets related to his business on the date of cessation of business, the tax base shall be the market prices on the date of cessation. 

The market price under this Section shall be the average of market price on the date tax liability taking place after the rule on price examination specified by the Director-General has been followed. In the case where the market price cannot be determined, the Director- General by Minister’s approval shall have the power to announce the method of determining the market price.

Section 79/4 In the case where value of tax base received or receivable from sale of goods, provision of services or import is expressed in a foreign currency, such value shall be converted into Thai currency in accordance with the following rules-

  1. in a case where foreign money is received from sale of goods or provision of services and such money is sold for Thai money in the month the tax liability taking place, then the Thai money shall be deemed the value of tax base received or receivable from sale of goods or provision of services, as the case may be. In the case where the foreign money is not sold in the month the tax liability taking place, then the exchange rate applicable shall be the average selling rate of commercial banks which calculated on the last working day of the month the tax liability taking place by the Bank of Thailand; 
  2. in the case of import of goods, the C.I.F. price of imported goods expressed in foreign currency which shall be converted into Thai currency at the rate which the Customs Department applies in the calculation of import duty under the customs law. 

Section 79/5 Tax base of import and sale of tobacco in category and kind prescribed by the Director- General with the Minister’s approval shall be in accordance with the following rules :

  1. for import, it shall be in accordance with Section 79/2; 
  2. for sale, it is the value of tobacco derived from deducting value added tax amount from the full retail price of tobacco. The value added tax amount shall be calculated at the value added tax rate on the full retail price. 

Section 79/6 Tax base of import and sale of crude oil and oil products as defined in this Section shall be in accordance with the following rule:-

1. for import, it shall be in accordance with Section 79/2;

2. for sale;

  • (a) in a case of crude oil, it shall be in accordance with Section 79; 
  • (b) in a case of each kind of oil product, it is the value of such kind of oil product derived from deducting value added tax amount from the full retail price of the such oil product. The value added tax amount shall be calculated at value added tax rate on the full retail price. The retail price of each kind of oil product in paragraph 1 shall be calculated in accordance with rule and condition prescribed by the Ministerial Regulation. 

"Crude oil" means crude oil under the law on petroleum except where the Director-General prescribes otherwise.

"Oil products" means gas oil, kerosene, fuel oil for jet plane, Diesel oil, heavy oil, bunker oil, lubricant oil, liquidified petroleum gas and other oil products, however only products which the central committee of price fixing and monopoly prevention has set the retail price.

Section 79/7 Tax base of sale of goods, provision of services or import of goods which is not provided for under the provision of this part shall be according to the Royal Decree and the provision of Royal Decree may prescribe any rules and conditions for the calculation of value of tax base of such business.

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Part 4

Value Added Tax Rate

Section 80 The tax rate of 10.00% shall be used in value added tax calculation for the following businesses other than those specified under Section 80/2

  1. sale of goods; 
  2. provision of services; 
  3. importation; 

The rate under paragraph 1 may be reduced by Royal Decree but the rate for each sale of goods, provision of services or importation shall be the same rate.

Section 80/1 Zero rate shall be used in value added tax calculation for the following businesses:

  1. export of goods which is not exempt from value added tax under Section 81(3); 
  2. provision of services performed in Thailand and used in a foreign country in accordance with the type, rule, procedure and condition prescribed by the Director- 2 General, provision of services performed in Thailand and used in a foreign country shall include provision of services performed in Thailand for the production of goods in Customs free zone for the purpose of exportation and the provision of services performed in such zone for the production of goods for the export purpose; 
  3. provision of international transport services by aircraft or ship by juristic business person; 
  4. sale of goods or provision of services to ministry, department, local authority, or state enterprises under overseas loan program or assistance program in accordance with rule, procedure and condition prescribed by the Director-General with the Minister’s approval; 
  5. sale of goods or provision of services to UN, special agencies of the UN, embassy, consulate office in accordance with rule, procedure, and condition prescribed by the Director-General; 
  6. sale of goods or provision of services between bonded warehouses, between business persons which carrying on business in Customs free zone whether they be in the same zone or not, or between bonded warehouses and business person carrying on its business in Customs free zone prescribed by the Director-General; 

Bonded warehouse under paragraph 1 shall mean bonded warehouse under the Customs law.

Section 80/2 The tax rate of 2.5% shall be applied in calculating value added tax payment in accordance with Section 82/16; Rate in paragraph 1 may be reduced by Royal Decree but the rate must be the same for every sale of goods and provision of services.

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Part 5

Value Added Tax Exemption

Section 81 Value added tax shall be exempt on the following businesses-

(1) sale of goods but not for export purpose or provision of services as follows:

  • (a) sale of agricultural products whether they are trunks, branch, leaf, bark, offshoot, root, bud, bulb, pod, seed or other parts of plants and their by- products in fresh or preserved condition in order to temporarily prevent from spoiling during transportation by chilling, frozen means or by other means or preservation to prevent from spoiling for retail sale or whole sale by chilling, frozen, drying , grinding, segmentation method or by other method, white rice or by-product from rice milling but not including wood, firewood or products from wood sawing or food products in can container or package processed on manufacturing basis in accordance with terms and conditions prescribed by the Director-General. 
  • (b) sale of alive or dead animals, and in the case of non- alive animal whether it be flesh, parts of animal, egg, milk or by-product from animal in fresh or preserved condition to temporarily prevent from spoiling during transportation by chilling, frozen means or by other mean or preservation to prevent from spoiling for retail sale or wholesale by chilling, frozen, dried, grind, segmentation means, or by other means, but not including food product in can container or package done on manufacturing basis in accordance with terms and condition prescribed by the Director-General; (
  • c) sale of fertilizers; 
  • (d) sale of fish meal , animal feed; 
  • (e) sale of pharmaceutical or chemical products used on plants or animal for nourishing, preventing, destroying, or eliminating pesticide or disease of plants and animals, 
  • (f) sale of newspaper, magazine or school books, 
  • (g) provision of educational services of public educational institutions, educational institutions under the law governing private universities or private schools under the law governing private school, 
  • (h) provision of services relating to art and cultural work in field and category of business as prescribed by the Director-General with the Minister’s approval, 
  • (i) provision of services in medical treatment, accounting, lawyer or other liberal professional services as prescribed by Revenue Department with Minister’s approval and governed by the laws governing such liberal professional services; 
  • (j) provision of medical service of health institution under the law governing such health institution; 
  • (k) provision of research or academic services as prescribed by the Director- General with the Minister’s approval; 
  • (l) provision of services of library, museum, zoo; 
  • (m) provision of services under employment contract; 
  • (n) provision of services on organizing amateur sports; 
  • (o) provision of services by public entertainer as prescribed by the Director- General with the Minister’s approval; 
  • (p) provision of domestic transport; 
  • (q) provision of international transport excluding transport by aircraft or ship; 
  • (r) rental of immovable property; 
  • (s) provision of service of local authority excluding commercial services of local authority or service generating income or benefit whether it is infrastructure business or not; 
  • (t) sale of goods or provision of services of a ministry, department which remit all revenue to the state without deducting expenses; 
  • (u) sale of goods or provision of services for the benefit of religions or public charity in Thailand and profits arising therefrom are not used for other purposes 
  • (v) sale of goods or provision of services as prescribed by Royal Decree; 

(2) import of the following goods;

  • (a) goods specified under (1) (a) to (f); 
  • (b) goods from abroad imported into customs free zone but applicable only to goods exempt from import duty under the law governing such matter; 
  • (c) goods classified into duty exemption category under the law on customs tariff; 
  • (d) goods imported and kept under care of Customs officials, and sent back abroad and import duty has been returned under the customs law; 

(3) export of goods or services by VAT registrant which is required to pay value added tax under Section 82/16.

In relation with exemption of value added tax under this Section, the Director-General may propose to the Commission of Taxation to determine category of business and conditions for exemption under this Section and when the Commission of Taxation has set the ruling, such ruling shall be published in the Royal Gazette, and if the business is not in accordance w ith category and condition prescribed, such business shall not be exempt from value added tax under this Section.

Section 81/1 Business person, carrying on the business of sale of goods or provision of services subject to value added tax and the value of tax base not exceeding that of small business as prescribed by Royal Decree, shall be exempt from value added tax. The Royal Decree under paragraph 1 shall not specify the value of tax base of each type of small business differently, and the value of tax base specified therein shall not be less than 600,000 Baht per annum.

Section 81/2 In relation with business exempt from value added tax in this Part or under other laws, business person shall be waived from complying with this Part, but the Director-General may require the business person to prepare report under Part 11.

Section 81/3 A business person carrying on the following businesses which are exempt from value added tax, has the right to notify the Director-General, on the form prescribed by the Director- General, of the request to apply for value added tax registration and pay value added tax in accordance with this Chapter in accordance with Section 82/3;

  1. sale of goods under Section 81 (1) (a) to (f); 
  2. small business under Section 81/1; 1 6 
  3. other business as prescribed by Royal Decree. 

When business person under paragraph 1 has registered for value added tax in accordance with Section 85/1 (2), such business person shall be able to cease from paying value added tax if he exercises the right to cancel his value added tax registration under Section 85/10 (3) and the Director-General cancels his value added tax registration.

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Part 6

Taxpayer and Tax Calculation

Section 82 The following persons shall be taxable person under this Chapter;

  1. business person, 
  2. importer. 

Section 82/1 For the purpose of value added tax collection, the following persons shall be taxable person as well:

  • in the case where business person residing abroad and habitually selling goods or providing services within Thailand which having an agent in Thailand, is such agent; 
  • in the case of sale of goods or provision of services which subject to zero-rate value added tax under Section 80/1 (5), if later on ownership of goods or right of services are transferred to persons who are not UN, specialized agency of UN, embassy, consulate, is the said transferee of ownership of goods or right of services; 
  • in the case of import of goods classified in duty-exemption category under the law on Customs tariff which exempt from value added tax in accordance with Section 81 (2) (c), if later on such goods are subject to duty under the law on Customs tariff, is; person who are liable under the law on customs tariff, consignee, if such goods are transferred, 
  • in the case of merger, is the merger and new business person; 
  • in the case of transfer of business, is the transferor and transferee. 

Section 82/2 In the case where business person residing abroad, the person responsible for carrying on the business including employee or agent residing in Thailand who has the power to act on his behalf directly or indirectly shall be the person liable to value added tax together with the person under Section 82.

Section 82/3 Under Section 82/7, 82/8 and 82/16 business person shall pay value added tax by deducting input tax from output tax of each tax month.

If output tax exceeds input tax, business person shall pay tax equal to the difference.

If input tax exceeds output tax, the difference shall be tax credit and business person shall be entitled to tax refund or tax payment in accordance with Part 8.

Input tax which is not deducted in tax calculation in the tax month under paragraph 1 because of necessary cause as prescribed by Director- General, shall be deducted in tax calculation in the tax month following such month in accordance with rule, procedure and condition as prescribed by Director-General, but not exceeding 3 years as from the date of issuance of tax invoice.

Section 82/4 Under Section 83/5 , 83/6 and 83/7, a VAT registrant shall charge value added tax from the purchaser of goods or services at the time tax liability taking place by calculating the amount of tax from tax base under Part 3 and on tax rates under Part 4.

The provision of this Section does not prohibit a VAT registrant to offer or show the price of goods or services inclusive of value added tax to the purchaser of goods or service, whether or not the VAT registrant informs the purchaser of goods or service of such value added tax inclusive price.

Value added tax which VAT registrant charges from the purchaser of goods or service under this Section shall be his output tax.

Value added tax charged from a VAT registrant by another VAT registrant under this Section as a consequence of purchasing goods or services for use in his business shall be the input tax of the VAT registrant who is the purchaser of goods or services.

Section 82/5 Input tax in the following cases shall not be deductible in tax calculation in accordance with Section 82/3;

  • in the case where there exists no tax invoice or failure to show tax invoice as a proof of payment of input tax, except under reasonable cause in accordance with rule and condition prescribed by the Director- General; 
  • in the case where tax invoice contains incorrect or incomplete particulars which are essential in accordance with rule and condition prescribed by the Director-General; 
  • input tax not directly related to the carrying on of business of a business person in accordance with rule and condition prescribed by the Director-General; 
  • input tax arises from expenses on guest-entertaining or similar activity in accordance with 2 1 rule and condition prescribed by the Director- General; 
  • input tax from tax invoice issued by unauthorized persons under Part 10; 
  • input tax as prescribed by the Director-General with Minister’s approval. 

Section 82/6 In the case where VAT registrant carrying on both VAT and non-VAT businesses and use the acquired goods or services in both businesses, such VAT registrant shall allocate input tax to be deducted from output tax in value added tax calculation in accordance with rule, procedure and condition prescribed by the Director-General.

Section 82/7 In selling of tobacco in category and kind prescribed by the Director-General with the Minister’s approval, the VAT registrant shall charge value added tax from the purchaser by calculating from tax base under Part 3 and on tax rates under Part 4 on every transaction.

Section 82/8 In selling crude oil and oil product in accordance with Section 79/6, a VAT registrant shall charge value added tax from the purchaser by calculating from tax base under Section 79/6 (2)(a) or (5) and on tax rate under Part 4 on every transaction.

Section 82/9 In the case where a VAT registrant sells goods or provides services and already includes output tax in the calculation of value added tax in order to pay value added tax in accordance with Section 82/3, if later on, any of the following events arise resulting in an increase in output tax wholly or partly, such VAT registrant shall include the increase output tax into the value added tax calculation in the tax month which a debit note is issued in accordance with Section 86/9:

  • there is an increase in price of goods sold because of the amount of goods exceeding the agreed amount, miscalculation resulting in price of goods lower than the actual price, or other causes as prescribed by Director-General; 
  • there is an increase in price of services because of the provision of services exceeding the agreed amount, miscalculation resulting in price of service lower than the actual price, or other causes as prescribed by Director-General; The VAT registrant receiving debit note shall make deduction of value added tax by regarding it as his input tax in the tax month in which the debit note is received.

Section 82/10 In the case where a VAT registrant sells goods or provides services and already includes output tax in the calculation of value added tax in order to pay value added tax in accordance with Section 82/3, if later on any of the following events arise resulting in a decrease in output tax wholly or partly, such VAT registrant shall deduct the decrease output tax from his output tax in the tax month which a credit note is issued in accordance with Section 86/10:

  1. there is a decrease in price of goods because of goods not being as agreed, goods damaged or shortage, miscalculation of price of goods resulting in price higher than actual price or other causes as prescribed by the Director-General; 
  2. there is a decrease in service fees because of the provision of services not being as agreed, shortage of service , miscalculating of service fees resulting in price higher than the actual price or other causes as prescribed by the Director-General; 
  3. receiving the goods returned because of damages, goods different from samples or description , or any other causes as prescribed by the Director-General; 
  4. there is a termination of service contract according to causes and conditions as prescribed by the Director-General; 

 The VAT registrant receiving credit note shall deduct value added tax as appeared on the credit note from his input tax in the tax month in which such credit note is received.

Section 82/11 In the case where a VAT registrant sells goods or provides services and already includes output tax into value added tax calculation in order to pay value added tax in accordance with Section 82/3, if later on, there arises bad debts from sale of goods or provision of services and the writing off of bad debts are in accordance with the amount, rule, procedure and condition prescribed by the Director-General, the VAT registrant shall deduct output tax calculated from bad debts from his output tax in the tax month in which the writing off of bad debts occurred. The calculation of bad debts in order to deduct it from output tax under paragraph 1 shall be 30 in accordance with rule, procedure and condition prescribed by the Director-General. In the relation with bad debts which have been written off under paragraph 1, if a VAT registrant has received payment later on, he shall include the received output tax calculated from bad debts under paragraph 1 into the output tax in the tax month in which payment is received.

Section 82/12 In selling goods or providing services which subject to zero rate value added tax in accordance with Section 80/1 (5) and later on there is a transfer of ownership of goods or right of services resulting in liability to pay value added tax , the transferee who is required to pay value added tax in accordance with Section 82/1 (2) shall pay value added tax when tax liability taking place which calculated from tax base under Section 79/3 (4) and on tax rate under Section 80.

Section 82/13  In the case where a business person residing abroad and carries on business in sale of goods or provision of services temporarily in Thailand without temporary value added tax registration in accordance with Section 85/3 or in the case where business person provides services from abroad and the services is used in Thailand, he shall be liable to value added tax and pay value added tax when tax liability taking place which calculated from tax base under Part 3 and on tax rate under Section 80 or 80/1, as the case may be.

Section 82/14 An importer shall be liable to value added tax and pay tax on imported goods when tax liability taking place which calculated from t ax base under Part 3 and on tax rate under Section 80.

Section 82/15 In importing goods classified in duty-exemption category under the law on Customs tariff , and later on there is a transfer of ownership of goods resulting in the liability to value added tax , the transferee who is required to pay value added tax in accordance with Section 82/1 (3) shall be liable to value added tax and pay value added tax when tax liability taking place which calculated from tax base in accordance with Section 79/2 (2) of Part 3 and on tax rate in accordance with Section 80.

Section 82/16 To accommodate a business person who carries on his business in sale of goods or provision of services in Thailand and such business has the value of tax base exceeding value of tax base of small business under Section 81/1 but not exceeding value of tax base which calculated under the rules prescribed by Royal Decree, such business person shall be liable to value added tax which is calculated from tax base in the tax month and on tax rates as prescribed in Section 80/2. In calculating tax base under paragraph 1, paragraph 3 (3) of Section 79 shall not be applied. The business person under paragraph 1 who registers for value added tax is prohibited from charging value added tax from the purchaser of goods or service in accordance with Section 82/4 or issuing tax invoices.

Section 82/17 The provision of Section 82/16 does not prohibit a business person from exercising his right to pay value added tax in accordance with Section 82/3, but if he has exercised such right, he cannot again apply Section 82/16.

Section 82/18 A VAT registrant who liable to value added tax in accordance with Section 82/16 shall notify the Director-General of cases and within the time limit as follows:

  • VAT registrant who wishes to calculate value added tax in accordance with Section 82/3 shall notify the Director-General in accordance with rule, procedure and condition as prescribed by the Director-General; 
  • VAT registrant who later on has value of tax base exceeding value of tax base prescribed in Royal Decree stipulated under Section 82/16, shall notify the Director-General within 15 days as from the date the value of tax base exceeding value of tax base as prescribed in such Royal Decree;

The VAT registrant under paragraph 1 shall pay value added tax in accordance with Section 82/3 and is no longer allowed to calculate value added tax in accordance with Section 82/16;

In calculating value added tax under paragraph 2, input tax, charged by another VAT registrant at the time such VAT registrant is liable to pay value added tax in accordance with Section 82/16, shall not be deductible in the calculation of value added tax in accordance with Section 82/3.

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Part 7

The Filing of Returns and Payment of Taxes

Section 83 Under Section 83/1, a VAT registrant shall file a tax return in such form as prescribed by the Director-General on the basis of tax month together with tax payment if any, whether or not sale of goods or provision of service are made in that tax month.

Tax return filing and payment of tax for any tax month shall be made within the 15 day of the following month except the Director-General may prescribe otherwise.

Tax return filing and payment of tax shall be made at local Amphur office where place of business is located except the Director-General may prescribe otherwise.

If a VAT registrant has several places of business, a tax return filing and tax payment shall be made separately by each place of business, except a VAT registrant files a request for joint- filing and payment made at any one of local Amphur office or at a place prescribed by the Director- General by virtue of paragraph 3 and upon receiving approval from the Director- General, it shall be in force as from the tax month as prescribed by the Director-General. 

In relation to filing of tax return under paragraph 1, if there is tax credit or refund, it shall be made in accordance with Part 8.

Section 83/1 As for some category and/or size of business which a VAT registrant is an individual, a Royal Decree may be made for VAT registrant to file a tax return and pay tax on a periodical basis, and each period shall not exceed 3 months.

For the purpose of value added tax calculation for business under paragraph 1, the period prescribed in Royal Decree shall be deemed the tax month of such business.

Section 83/2 For the purpose of tax collection, person liable to tax under Section 82/1 (1), (3), (4) or (5) and Section 82/2 shall be required to file a tax return and pay tax similarly to a VAT registrant.

Section 83/3 The following persons shall be required to file a tax return on behalf of or together with a VAT registrant:

  1. in the case where a VAT registrant is incompetent or quasi-incompetent, is a custodian or curator as the case may be; 
  2. in the case where a VAT registrant or an importer who is an individual dies, is an estate administrator, heir or possessor of an estate;
  3. in the case where a VAT registrant is a non-juristic body of persons, is a director, manager, or any person in such non-juristic body of persons; 
  4. in the case where a VAT registrant is a juristic person, is a member of the board of directors, director, manager or person responsible for management, 
  5. in the case where a VAT registrant is a juristic person which ceases business by way of liquidation, is a liquidator and a member of the board of directors, director, manager, or person responsible for management who is in the position prior to the date of cessation. 

Section 83/4 Subject to Parts 13 and 14, in the case where a VAT registrant file incorrect tax return, whether or not such mistake affecting the amount of tax in a tax month, he shall file an additional tax return together with tax payment, if any, correctly at the place of the prior filing of tax return.

Section 83/5 In relation to an auction, an auctioneer selling by auction the property of a VAT registrant shall be required to remit value added tax which the VAT registrant is liable to.

The person who is required to remit tax under paragraph 1, shall remit value added tax by filing a form as prescribed by the Director-General, at a place and within time limit specified in Section 52, and Section 54 and Section 55 shall be applied mutatis mutandis.

  An auctioneer which is a government authority shall issue receipt to the purchaser in such auction and make a copy to VAT registrant who is required to pay value added tax as a proof.

In the case where a government authority sells property of a VAT registrant which is legally seized by other means than an auction, the provision of this Section shall be applied mutatis mutandis .

A receipt issued by government authority under paragraphs 3 and 4 shall be deemed a tax invoice except receipt issued by a government authority upon sale by auction of property of a VAT registrant who is liable to tax under Section 82/16, shall not be deemed tax invoice.

Section 83/6 Where the payment of goods or services is made to the following business persons, the payer for goods or services shall be required to remit value added tax amount which the business person is liable:

  1. business person residing abroad who temporary carries on the business in sale of goods or provision of services in Thailand and does not temporarily register for value added tax in accordance with Section 85/3; 
  2. business person providing services abroad and such service is used in Thailand; 
  3. other business person as prescribed in Royal Decree; Paragraph 2 of Section 83/5 5 shall be applied.

Section 83/7 In relation to sale of goods or provision of services which are zero rate, the transferee of goods or right in services shall be required to remit value added tax which he is liable under Section 82/2 within 30 days as from the date tax liability taking place at local Amphur office in which such person resides.  

Section 83/8 Subject to Section 83/9, an importer who is liable to value added tax shall entry in such manner and form prescribed by the Customs Department to customs officials at custom station in accordance with the Customs law and pay value added tax to Customs official together with payment of import duties under the Customs law.

In the case of taking goods into bonded warehouse under the Customs law, or importing machinery or raw material to be use in production for the purpose of exportation of a promoted person under the law on investment promotion, the importer may place security money, security or provide guarantor as a security for value added tax instead of tax payment.

The procedure of placing and withdrawing security shall be in accordance with rule, procedure and condition prescribed by the Director-General with the Minister’s approval;

In relation to import of goods classified in duty-exemption under the law on Customs tariff which exempt from value added tax under Section 81 (2) (c), if later on such goods are liable to duty under the law on Customs tariff, the person liable to tax under Section 82/1 (3) shall entry and pay tax under paragraph 1 together with payment of import duty under the Customs law.

Section 83/9 In the case of taking goods into bonded warehouse under the Customs law or Customs free zone, if later on goods are removed from bonded warehouse but not for the purpose of export or taking good out of Customs free zone but not for the purpose of export, an importer who is liable to value added tax shall entry and pay value added tax to Customs official together w ith payment of import duty under the Customs law.

Section 83/10 In relation to payment of value added tax:

  1. for imported goods, the Customs Department shall collect for the Revenue Department and in the case of overtime goods under Section 78/2 (3), the Customs Department shall deduct value added tax, fines and surcharges for the Revenue Department as prescribed by the Director-General; 
  2. for sale of goods or provision of services which subject to excise taxes, the Excise Department shall collect for the Revenue Department. 

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Part 8

Tax Credit and VAT Refund

Section 84 For an excess tax credit of each tax month as from the calculation under Section 82/3, a VAT registrant shall be entitled to carry it for the value added tax payment in accordance with rule, procedure and condition prescribed by the Royal Decree or to claim for refund at the time of filing of tax return of such tax month under Section 83 or 83/1, except in the case of additional tax return filing because of an incorrect tax return under Section 83/4, then he shall be entitled to claim for refund at the time of filing of such additional tax return.

Section 84/1 Claiming of value added tax refund on sale of goods or provision of services shall be under the following conditions:

  1. sale of goods or provision of service where there is tax to be refunded but a VAT registrant does not claim a refund under Section 84, the VAT registrant shall be entitled to file a request for tax refund within 3 years as from the day after the last day on which the tax return is required to be filed in that tax month; 
  2. sale of goods or provision of services in other cases, filing of request shall be made within 3 year as from the date of tax payment.

Request for tax refund shall be in the form prescribed by the Director- General.

Where the claimer is a VAT registrant, he shall file a request for tax refund at Amphur office where the place of business located and if he has several places of business, a request shall be made by each place of business, except the VAT registrant is granted an approval by the Director-General to file a joint return together with payment of tax, the request for tax refund shall be filed jointly at Amphur office or a place prescribed by the Director-General by virtue of paragraph 4 of Section 83. In the case where a claimer is not a VAT registrant, a request for tax refund shall be filed at Amphur office where the claimer resides.

Section 84/2 A request for value added tax refund on importation in the cases below shall be under the following conditions:

  1. in the case where importer having an objection under the customs law or being under a law suit in court, a request for tax refund shall be made within or from the date of final judgment as the case may be; 
  2. in the case where importer not being a VAT registrant pays value added tax and later on returns goods abroad, a request for tax refund shall be in accordance with rule, procedure, condition and proportion similar to a request for import duty refund under the Customs law.

Request for the refund under this Section shall be in such form as prescribed by the Director- General In the case where a claimer is a VAT registrant, request for tax refund shall be filed at local Amphur office under paragraph 3 of Section 84/1 and in the case where a claimer is not a VAT registrant, a request for tax refund shall be made at Customs station.

Section 84/3 Upon being refunded value added tax, a person receiving tax refund shall be entitled to interest under the conditions in Section 4 Decem.

Section 84/4 The Director-General shall have the power to prescribe rule, procedure and condition for outbound traveler purchasing goods from VAT registrant in order to take out of Thailand, to claim for value added tax.

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Part 9

Value Added Tax Registration

Section 85 A VAT registrant who is commencing business in sale of goods or provision of services, shall have the right to make an application for value added tax registration before the date of business commencement.

An application for value added tax registration under paragraph 1 shall be in such form as prescribed by the Director-General and filed at local Amphur office where the place of business is located.

If a business person has several places of business, value added tax registration application shall be made at local Amphur office where the headquarters is located.

Application of value added tax registration and issuance of certificate of value added tax registration shall be in accordance with rule, procedure and condition prescribed by the Director-General.

Section 85/1 A business person who carrying on business in sale of goods or provision of service shall apply for value added tax registration within the following time limit:

(1) for business person carrying on business on sale of goods or provision of services and the value of tax base of the business exceeding value of tax base of small business as prescribed by the Royal Decree by virtue of Section 81/1, value added tax registration application shall be made within 30 days as from:

  • (a) the date which the value of tax base of business exceeds the value of tax base of small business in the case where the Royal Decree making the provision for determining value of tax base of small business or; 
  • (b) the date which the Royal Decree comes into force in the case where there exists a Royal Decree making new provision for determining value of tax base of small business or the Royal Decree is amended such that the value of tax base of small business is less than previously prescribed;

(2) for a business person who notifies the Director-General of value added tax payment in accordance with Section 81/3, value added tax registration application shall be made within 30 days as from the date of notifying the Director-General.

Paragraphs 2, 3 and 4 of Section 85 shall be applied.

Section 85/2 Agent under Section 82/1 (1) shall be responsible for value added tax registration of business person residing abroad.

Section 85/3 The following business persons shall not be required to register for value added tax:

  1. business person residing abroad and entering Thailand to carry on business on sale of goods or provision of service temporarily; 
  2. business person providing service from abroad and such service is used in Thailand; 
  3. other business person as prescribed by the Director-General if there is a reasonable cause.

The Director-General may allow a business person under (1) or (3) whose business is in accordance with description and procedure prescribed by the Director-General, to apply for temporary value added tax registration.

Application for temporary value added tax registration and issuance of temporary value added tax registration certificate shall be in accordance with form, rule, procedure and condition as prescribed by the Director-General.

For the purpose of paragraph 1, the Director-General shall have the power to prescribe rule and condition to specify which entering into Thailand to sell goods or provide services is a temporary one.

Section 85/4 A VAT Registrant shall display certificate of value added tax registration at a prominent place which can easily be seen at each place of business.

Section 85/5 In the case where the certificate of value added tax registration is lost, destroyed or essentially damaged, a VAT Registrant shall make a request for a substitute for the certificate of value added tax registration at the place of registration for value added tax within 15 days as from the date the certificate is lost, destroyed or damaged.

Request for and issuance of a substitute for the certificate of value added tax registration shall be in accordance with form, rule, procedure and condition as prescribed by the Director- General.

A substitute for the certificate of value added tax registration shall be deemed certificate of value added tax registration

Section 85/6 In the case where there are changes in essential particulars in value added tax registration including change in the name of place of business, category of business, goods sold or services provided, a VAT registrant shall notify such changes at the place of registration for value added tax within 15 days as from the date the changes occur.

The notification of changes in particulars under paragraph 1 and issuance of an amended certificate of value added tax registration shall be in accordance with form, rule, procedure and condition as prescribed by the Director-General.

Section 85/7 Any VAT registrant wishing to have additional place of business shall notify such changes at the place of registration for value added tax prior to the opening date of the additional place of business within 15 days in order to request for a certificate of value added tax registration for such place of business.

In relation to closing of some places of business, a VAT registrant shall notify changes in value added tax registration at the place of registration for value added tax within 15 days as from the date of closing.

A VAT registrant closing places of business shall return the certificate of value added tax registration of such places of business at the place of registration for value added tax and notify changes in value added tax registration. Paragraph 2 of Section 85/6 shall be applied.

Section 85/8 A VAT registrant wishing to move a place of business shall notify changes in value added tax registration at place of registration for value added tax within 15 days prior to the date for moving.

A VAT registrant moving place of business shall notify an opening of new place of business at local Amphur office which the new place of business located within 15 days prior to the opening date of the new place of business in order to request for a certificate of value added tax registration of such new place of business and return the certificate of value added tax registration of the former place of business.

Section 85/9 The Director-General shall have the power to prescribe description and condition for place of business which a VAT registrant temporary establishes to be specific place of business.

Temporary place of business which is in accordance with description to be specific place of business as prescribed by the Director-General shall not be deemed place of business under Section 85/6, 85/7 and 85/8, but the VAT registrant establishing such specific place of business shall prepare books and comply in accordance with form, rule, procedure and condition as prescribed by the Director-General.

Section 85/10 The following VAT registrants shall be entitled to request the Director-General to cancel certificate of value added tax registration:

  1. in the case there exists a Royal Decree prescribing value of tax base of small business, is a VAT registrant whose business having value of tax base less than that of small business as prescribed in the Royal Decree for at least 3 consecutive years prior to the request for cancellation of certificate of value added tax registration; 
  2. in the case the Royal Decree is amended such that making provision for higher value of tax base of small business as previously prescribed, is a VAT registrant person whose business having value of tax base prior to the amendment of Royal Decree less than that of small business for at least 3 consecutive years; 
  3. in the case where a VAT registrant notifies the Director-General for the purpose of value added tax payment under Section 81/3, is the VAT registrant who pays value added tax consecutively for a period of time not less than that prescribed by Ministerial Regulation as from the first day of being a VAT registrant, and has a business having value of tax base less than that of small business as prescribed by Royal Decree during such period of time; 
  4. in the case where a VAT registrant liable to tax under Section 82/16 whose business having value of tax base less than that of small business as prescribed in Royal Decree consecutively for a period of time not less than that prescribed by Ministerial Regulation prior to the request for cancellation of certificate of value added tax registration. 

A request to the Director-General to cancel a certificate of value added tax registration under paragraph 1 shall be in accordance with form, rule, procedure and condition as prescribed by the Director-General.

Ministerial Regulation under (3) may prescribe a different period for each category of business; however, the prescribed period shall not be less than 2 years.

Section 85/11 Any business registered for value added tax and having value of tax base exceeding that of small business as prescribed by Royal Decree issued under Section 81/1 which consequently amended such that prescribing value of tax base of small business higher than previously prescribed resulting in the value of tax base of the said business to be lower than the newly prescribed value of tax base of small business, the value added tax registration of such business person shall be in force, except the VAT registrant exercises the right under Section 85/10 (2) and (4) in requesting the Director-General to cancel the value added tax registration.

Section 85/12 Any VAT registrant wishing to temporarily cease the business for more than 30 days consecutively, such VAT registrant shall notify the temporary cessation at local Amphur office which the place of business located within 15 days as from the date of temporary cessation.

Section 85/13 Any VAT registrant wishing to transfer business partly or wholly shall notify such transfer and change in particulars in value added tax registration, if any, or notify the transfer and business cessation in accordance with Section 85/15, as the case may be, in such form prescribed by the Director-General at the place of value added tax registration at least 15 days prior to the transfer date.

In the case where a transferee is a VAT registrant, he shall notify the transfer and change in particulars in value added tax registration, if any, at the place which the transferee registers for value added tax at least 15 days prior to the date to transfer. In the case where a transferee is not a VAT registrant, he shall make a request for value added tax registration at least 15 days prior to the transfer date and when the request is made, the transferee may meanwhile carry on the business.

Paragraph 2 of Section 85/15 shall be applied in the case of transfer of the whole business

Section 85/14 A VAT registrant, being a juristic person, wishing to merge, the VAT registrant shall notify the business cessation in accordance with Section 85/15 and form prescribed by the Director- General and the new juristic person, resulting from the merger, shall make the request for value added tax registration within 15 days as from the date of business registration of the new juristic person.

Section 85/15 Any VAT registrant ceasing the business shall notify such cessation in accordance with form prescribed by the Director-General at the place of registration for value added tax within 15 days as from the date of business cessation.

A VAT registrant ceasing the business shall return the certificate of value added tax registration at the place of registration for value added tax at the time of notification of business cessation.

Section 85/16 In the case where a VAT registrant being an individual dies, his status of being VAT registrant shall terminate and the possessor of the estate responsible for carrying on that business shall have the right to carry on the business for not more than 60 days as from the date of the death, but the value added tax registrar must be informed of such death at the earliest opportunity.

In the case where an estate possessor responsible for carrying on the business of the deceased exercises his right in carrying on the business as specified in paragraph 1, he shall have the right and liability as a VAT registrant and in case of reasonable cause, an estate possessor may request the Director-General for extension of time as specified in paragraph 1 by giving necessary reasons, then the Director-General shall have the power to extend the time as he deems appropriate and may also set condition for such extension.

In the case where an estate possessor responsible for carrying on the business of the deceased does not exercise the right under paragraph 1, he shall return the certificate of value added tax registration of the deceased at the place of registration for value added tax within 15 days as from the date of the death.

If an estate possessor or heir wish to carry on the business of the VAT registrant who dies, an estate administrator or heir shall have the right to transfer the business of the VAT registrant in accordance with form, rule procedure and condition prescribed by the Director-General and paragraph 2 of Section 85/13 shall be applied mutatis mutandis.

When the Director-General orders the transfer of business, the right of the estate possessor under this Section shall An estate possessor or heir being a transferee of business shall return the certificate of value added tax registration of the deceased at the place of registration for value added tax at the time of notification of changes in particulars in value added tax registration or application for value added tax registration, as the case may be, and in the case where an estate possessor responsible for carrying on the business of the deceased exercising the right to carry on that business under paragraph 1 but where the time limit specified in paragraph 1 or time extended by the Director-General under paragraph 2 passed without a request for transfer of that business being made by the estate administrator or heir under paragraph 4, the estate possessor responsible for carrying on the business of the deceased shall return the certificate of value added tax registration at the place of registration for value added tax within 15 days as from date following the last day of time limit.

Section 85/17 A VAT registrant fails to comply with the provisions in this chapter, the Director-General shall have the power to cancel the value added tax registration of the said VAT registrant and shall notify the business person of the cancellation in writing.

The business person being notified under paragraph 1 shall return the certificate of value added tax registration at the place of registration for value added tax within 7 days as from the date of receiving the notification of the cancellation.

Section 85/18 In the case where the Director-General cancels the certificate in accordance with Section 85/10, or where the VAT registrant ceases the business in accordance with Section 85/5, or where VAT registrant dies and an estate possessor responsible for carrying on the business of the deceased who died exercising the right in carrying on the business but later on such right terminates without an estate administrator or heir requesting for transfer of that business in accordance with Section 85/6, or where VAT registrant being cancelled the value added tax registration under Section 85/17, the VAT registrant or estate possessor responsible for carrying on that business, as the case may be, shall be liable as a VAT registrant until the Director-General orders the name of such VAT registrant be stroked off the value added tax register in accordance with Section 85/19.

Section 85/19 In the following cases, the Director-General shall order the name of VAT registrant to be stroked off the value added tax register-

  1. where the Director-General cancels the registration in accordance with Section 85/10; 
  2. where VAT registrant ceases the business in accordance with Section 85/15;
  3. where VAT registrant dies and no request for transfer of business of the deceased is made in accordance with Section 85/16; 
  4. where the Director-General cancels the value added tax registration in accordance with Section 85/17. 

The Director General shall notify the VAT registrant, estate administrator, heir or estate possessor of the order in writing without delay. VAT registrant or estate possessor responsible for the carrying on the business of the deceased and exercising the right in carrying on that business in accordance with Section 85/16 shall not be liable as the VAT registrant effective on the date the order to strike the name off the value added tax register is made by the Director-General.

If the VAT registrant is a juristic person, the Director-General shall notify a business registrar under the law on such matter of the striking the name off the value added tax register within 30 days and the said registrar shall record the value added tax registration cancellation in the register without delay.

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Part 10

Tax Invoice, Debit Note, Credit Note

Section 86 Subject to Section 86/1, 86/2 and 86/8, a VAT registrant shall immediately issue tax invoice and its copy for every sale of goods or provision of service at the time the tax liability taking place as well as provide such tax invoice to the purchaser of goods and service, and keep its

Subject to Section 86/1, 86/2 and 86/8, a VAT registrant shall immediately issue tax invoiceand its copy for every sale of goods or provision of service at the time the  tax liability taking place as well as provide such tax invoice to the purchaser of goods and service, and keep its copy in accordance with Section 87/3

Business person exempted from value added tax registration but temporary registering for value added tax in accordance with Section 85/3, shall be able to issue tax invoice in the event which is in accordance with rule, procedure and condition as prescribed by the Director

Tax invoice shall be issued by each place of business, except the Director-General prescribesotherwise.

The issuance of tax invoice by an agent on behalf of the VAT registrant shall be in accordance with rule, procedure and condition as prescribed by the Director-General.

Section 86/1 It is prohibited for the following VAT registrant to issue tax invoice:

VAT registrant residing abroad and having his agent issuing tax invoice on behalf of him in accordance with Section 86/2;

VAT registrant whose property sold by auction or by other means by other persons in accordance with Section 83/5

VAT registrant as prescribed in a Royal Decree issued under Section 83/6 (3).

Section 86/2 If a VAT registrant residing abroad and having an agent acting on his behalf wishes his agent to issue tax invoice on his behalf, such VAT registrant shall submit the request for an approval to the Director-General in accordance with the regulation prescribed by the Director-General.

Upon an approval of the request, such agent shall issue tax invoice on behalf of the VAT registrant in accordance with rule, procedure, and condition as prescribed by the Director- General and he shall have the duty and responsibility exactly and jointly with the VAT registrant regarding to tax invoices.

Section 86/3 In relation to sale by auction under Section 83/5, the auctioneer not being a government authority selling property of VAT registrant shall issue tax invoice or receipt under Section 105, as the case may be, on behalf of the VAT registrant who owns the property.

Section 86/4 Subject to Section 86/5 and 86/6, the tax invoice shall at least contain the following particulars:

  • the word “tax invoice” at a prominent place;
  • the name, address and taxpayer identification number of the VAT registrant issuing tax invoice and in the case where an agent issues tax invoice on behalf of the VAT registrant in accordance with paragraph 4 of Section 86 or 86/2 or auctioneer issues tax invoice for VAT registrant in accordance with Section 86/3, name, address and tax identification number of such person shall be stated in tax invoice; 
  • the name and address of the purchaser of goods or service; 
  • serial number of tax invoice and, if any, of book; 
  • description, type, category, quantity and value of goods or services the amount of value added tax calculated on value of goods or services which clearly separated from the value of goods or services; 
  • the date of issuance; any other particulars as prescribed by the Director-General. 

Particulars in tax invoice shall be in Thai language, Thai currency and Thai or Arabic numeral. However, in some category of business which tax invoice is required to be in foreign language or currency, the VAT registrant shall be issue such tax invoice upon approval from the Director-General.

Tax invoice may be issued jointly for several sales of goods or provision of services except where the Director-General prescribes that the issuance of tax invoice on some or several goods or services must be made separately for each good or service.

Section 86/5 The following tax invoices may be prescribed by the Director-General to contain particulars other than specified above:

  • tax invoice of specific goods or services under Section 79/1; 
  •  tax invoice of tobacco under Section 79/5 or crude oil and oil products under Section 79/6; 
  •  tax invoice which the Director-General approves to be in foreign language or currency under paragraph 2 of Section 86/4; 
  • tax invoice of other goods or services as prescribed in Ministerial Regulation. 

Section 86/6 To accommodate VAT registrant carrying on the business in retail sale of goods or provision of service in a small amount to a large number of customers, the Director-General shall have the power to prescribe description and/or condition of such business for it to be retail business; and in the retail business, the price of goods or service fees shown shall be inclusive of value added tax.

VAT registrant being a retailer shall be entitled to issue abbreviated tax invoice, however his agent shall not be allowed to issue abbreviated tax invoice.

Abbreviated tax invoice shall contain at least the following particulars:

  1. The word “tax invoice” at a prominent place; 
  2. the name or abbreviated name and taxpayer identification number of the VAT registrant issuing tax invoice; 
  3. serial number of tax invoice or, if any, of book;  
  4. description, type, category, quantity and value of goods or services; 
  5. the price of goods or services which clearly shown that value added tax is included; 
  6. the date of issuance; 
  7. any other particulars as prescribed by the Director-General.

Description, type or category of goods under paragraph 1 may be in code system but the VAT registrant shall notify the code to the Director- General at least 15 days prior to using the said code.

Particulars in abbreviated tax invoice shall be in Thai language, Thai currency and Thai or Arabic numeral. However, in some category of business which tax invoice is required to be in foreign language or currency, the VAT registrant shall be issued such tax invoice upon approval from the Director-General.

The VAT registrant carrying on the retail business wishing to use the cash register machine to issue abbreviated tax invoice, shall submit the request for approval to the Director-General and the use of such cash register machine shall be in accordance with the regulation on rule, procedure and condition on the use of cash registering machine prescribed by the Director- General.

Paragraph 3 of Section 86/4 shall be applied in issuance of tax invoice under this Section.

Section 86/7 The VAT registrant carrying on the business which is not retail business wishing to issue abbreviated tax invoice and/or use cash register machine as prescribed in Section 86/6 may request for approval to the Director-General giving reasonable and necessary cause and upon approval, the Director-General may prescribe any rule and condition as he deems appropriate.

Section 86/8 To accommodate a VAT registrant carrying on the business on sale of goods or provision of service in small amount, the Director-General shall have the pow er to prescribe description and condition of such business for the purpose of this Section.

In relation to carrying on the business in small amount, the VAT registrant shall not be required to issue tax invoice for sale of goods or provision of service having value not exceeding the amount specified by the Director-General, however such amount shall not exceed 1,000 Baht. Nevertheless the purchaser of goods or service may request the tax invoice. The Director-General shall have the power to prescribe requirement and condition for VAT registrant selling goods or providing services to comply with as he deems appropriate.

Section 86/9 VAT registrant who sold goods or provided services but has to recalculate the amount of value added tax chargeable because of an increase of value of goods or services as a result of the events specified in Section 82/9, shall issue debit note to the purchaser of goods and service recipient in the tax month in which such event taking place, except in case of necessity which the debit note cannot be issued in the tax month in which such event taking place, then the debit note shall be issued to the purchaser of goods or service recipient in the tax month following the month in which the event taking place.

Debit note shall contain at least the following particulars:

  • the word “debit note” at a prominent place; 
  • the name, address and tax identification number of the VAT registrant issuing the debit note, and in the case where an agent issues a debit note on behalf of the VAT registrant in accordance with paragraph 4 of Section 86, 86/2, name, address and tax identification number of such agent shall be stated; 
  • the name, address of the purchaser of goods or services recipient; 
  • the date of issuance of the debit note; 
  • serial number of the original tax invoice and, if any, of book, value of goods and service shown in the tax invoice, the correct value of goods or service, the difference between the two, and the amount of tax payable on the difference; 
  • brief reason in issuing debit note; 
  • other particulars as prescribed by the Director-General. 

Section 86/4 shall be applied and the debit note under this Section shall be deemed tax invoice.

Section 86/10 VAT registrant who sold goods or provided service, but has to recalculate the amount of value added tax chargeable because of a decrease in value of goods or service as a result of the events specified in Section 82/10, shall issue a credit note to the purchaser of goods or service recipient in the tax month in which such event taking place, except in the case of necessity which the credit note cannot be issued in the tax month in which such event taking place, then the credit note shall be issued to the purchaser of goods or service recipient in the tax month following the month in which such event taking place.

Credit note shall contain at least the following particulars:

  • the word “credit note” at a prominent place; 
  • the name, address and tax identification number of the VAT registrant issuing credit note, and in the case where an agent issues credit note on behalf of the VAT registrant in accordance with paragraph 4 of Section 86 or 86/2, the name, address and tax identification number of such agent shall also be stated; 
  • the name and address of the purchaser of goods or service recipient; 
  • the date of issuance of the credit note; 
  • the serial number of the original tax invoice and, if any, of book, the value of goods or service shown in the tax invoice, the correct value of goods or service, the difference between the two, and the amount of value added tax being credited; 
  • brief reason in issuing credit note, 
  • other particulars as prescribed by the Director-General.

Paragraph 2 of Section 86/4 shall be applied and the credit note under this Section shall be deemed tax invoice.

Section 86/11 In the case where the name of a VAT registrant is stroked off the value added tax register because he ceases the business or the Director-General orders for the cancellation of his value added tax registration, the Director-General shall allow such business person to continue to issue tax invoice, debit note, or credit note temporarily until the business ceased however he shall follow rule, procedure and condition prescribed by the Director-General.

Section 86/12 A VAT registrant issuing tax invoices, debit notes or credit notes, and later on there is a request from the purchaser of goods or service recipient whose tax invoice, debit note or credit note is lost, destroyed or damaged in essential part, such VAT registrant shall issue a substitute for tax invoice, debit note or credit note to such purchaser or service recipient in accordance with rule, procedure and condition prescribed by the Director-General.

A substitute for tax invoice, credit note or debit note shall contain the same particulars as in the tax invoice, debit note or credit note, as the case may be, with the word in a prominent place stating that it is a substitute for which tax invoice, debit note or credit note.

Section 86/13 It is prohibited for a person who is not a VAT registrant or an authorized person in issuing tax invoices under this Chapter to issue tax invoice, debit note or credit note. Any person issuing tax invoice, debit note or credit note without an authorization to do so, such person shall be liable to value added tax for the amount shown in tax invoice, debit note or credit note as if he was a VAT registrant.

Section 86/14 Receipt issued by the Revenue Department on value added tax payment under Section 83/6 or 83/7 and receipt issued by the Customs Department or Excise Department on value added tax collection for the Revenue Department under Section 83/10 (1) or (2) shall be deemed a tax invoice.

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Part 11

Preparation of Report and Keeping of Evidence and Document

Section 87 Subject to Section 87/1 or 87/2, a VAT registrant shall be liable to make the following reports:

  1. output tax report, 
  2. input tax report,
  3. goods and raw material report only in the case where the VAT registrant carries on business on sale of goods.

In the case where a VAT registrant is liable to tax under Section 82/16, he shall be liable to make report on value of tax base and goods and raw material report.

Reports under paragraphs 1 and 2 shall be in accordance with form prescribed by the Director-General and shall be made by each place of business.

Method of making an entry into the report shall be in accordance with rule, procedure, and condition prescribed by the Director-General and an entry shall be made within 3 working days as from the date of acquisition or disposition of such goods or service, except in the case of necessity the Director-General shall prescribe otherwise as he deems appropriate.

Section 87/1 Where it appears to be necessary or appropriate, the Director-General shall, with the Minister’s approval, have the power to direct the VAT registrant to make report differently from Section 87.

Section 87/2 The Director-General shall, as he deems appropriate, have the pow er to order an agent of a VAT registrant to make reports even though he is not a VAT registrant. The reports of an agent under this Section shall be in accordance with form, rule, procedure and condition prescribed by the Director-General.

Section 87/3 VAT Registrant liable to tax return filing and tax payment and person liable to making reports under the provision in this Part shall keep tax invoice, report, copy of tax invoice as well as documents supporting the making of such reports or other documents as prescribed by the Director-General at the place of business w hich such report is made or other places as prescribed by the Director-General for at least 5 years as from the date of tax return filing or report making, as the case may be, except:

  1. in the case where a business person temporarily registered for value added tax under Section 85/3, such keeping of report and document shall be in accordance with rule, procedure, and period of time as prescribed by the Director-General, but such period of time shall not exceed 5 years; 
  2. in the case where a VAT registrant ceasing the business, the VAT registrant, a liable person in tax return filing and tax payment or a liable person in report making shall continue to keep the above reports and documents which he is liable to keep on the date of business cessation for 2 year; 
  3. the Director-General, as he deems appropriate, may prescribe for the VAT registrant to keep the reports and documents for more than 5 years but not exceeding 7 years.

The keeping of tax invoices and other documents supporting the making of input tax report under Section 87 (2) shall be in order and corresponding with items in the report, and shall be in accordance with rule, procedure and condition as prescribed by the Director-General.

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Part 12

Power of Assessment Official

Section 88 Assessment official shall have the power to assess value added tax, fine and surcharge under this part in the case where:

  1. it appears to an assessment official that person liable to tax does not file tax return, tax remittance return or an entry within the prescribed time;
  2. an assessment official having an evidence that a person liable to tax files tax return, tax remittance return or an entry by under declaring the amount of tax due;
  3. person liable to tax fails to comply with a summons issued by an assessment official or to answer the assessment official’s questions without reasonable causes;
  4. business person fails to issue tax invoice for the purpose of input tax or copy of tax invoice for the purpose of output tax as well as other evidence for the purpose of tax calculation or tax credit;
  5. business person fails to keep copy of tax invoice for the purpose of output tax and other evidence supporting report making as prescribed by law; or
  6. it appears to an assessment official that the business person liable to value added tax registration in accordance with Section 85/1 does not register for value added tax.

Section 88/1 Assessment official shall have the power to assess value added tax charge, fine and surcharge under this Chapter in the case where any person issues tax invoice, debit note or credit note without an authorization under Section 86/13 for the amount shown in such tax invoice, debit note or credit note.

Section 88/2 For the purpose of Section 88 and Section 88/1, assessment official shall have the power to:

  1. make tax return, tax remittance return or an entry base on reliable evidence where the person liable to tax does not file tax return, tax remittance return or an entry;
  2. correct tax return, tax remittance return or an entry;
  3. assess tax where there is an evidence on underpaid tax by business person or undervalued tax base;
  4. determine appropriate value by considering wealth or behavior of business person or his trade statistics or trade statistics of business person carrying on similar business, or by considering other factors which reflects appropriate value;
  5. correct value of goods purchased or service received, as the case may be, where there arises events under Section 88 (3), (4) or (5);
  6. assess tax as seen or considered correct where there arises events under Section 88 (3), (4), or (5) without the need to follow (1) – (4).

In exercising the power of assessment official where the events under Section 88 (6) arises, a business person required to make application for value added tax registration under Section 85/1 but did not do so shall be deemed liable to tax as if he was a VAT registrant.

Section 88/3 Assessment official shall have the power to enter into a place of business of a business person whether or not he is a VAT registrant, or into other relevant places, from the sunrise to sunset or during working hours of business person, and investigate whether the business person duly comply with the provisions in this chapter; in doing so an assessment official shall have the power to order the business person or persons in that place to act as necessary for the purpose of investigating relevant document, and to seize such document.

In proceeding with paragraph 1, assessment official shall show his identification card and other document to relevant person upon entering for investigation.

Section 88/4 In proceeding with this part, an assessment official shall have the power to issue summons to person liable to tax, person acting in a representative capacity or witness and to order such person to provide accounts, documents or other evidence in relation to such matter in order to investigate, or order a witness to reply to the questions in writing, but he shall provide the time for at least 7 days as from the date of receiving a summons or order.

Section 88/5 When an assessment official has assessed value added tax in accordance with Section 88 and 88/1, he shall notify such assessment in writing to the person liable to tax or person under Section 88/1; and in this case the person liable to tax or person under Section 88/1 shall have the right to appeal in accordance with the provisions in Part 2, Chapter 2, Title 2, except in the case where an assessment official make an assessment as a result of causes in Section 88 (3) in which an appeal is prohibited.

Section 88/6 An assessment by assessment official shall be made within a period of time as follows:

(1) in respect to a business person;

  • (a) 2 years as from the last day of the period for tax return filing or of the period extended by the Minister or the Director-General whichever is the later date, however, only applicable to cases where person liable to tax files the tax return within such period;
  • (b) 2 years as from the date of filing the tax return by person liable to tax, however, only applicable to cases where person liable to tax files the tax return after the last day of the period specified in (a) but not exceeding 10 years as from the last day of tax return filing period; 
  • (c) 10 years as from the last day of tax return filing period in the case where person liable to tax return filing fails to file the tax return or files tax return with the declared tax base lower than the value received or receivable by the business person by more than 25 percent of the tax base declared in the tax return;

(2) in respect to an importer not being a business person, 2 years as from entering; except in the case where an importer files an objection under customs law or a court action, 2 years as from the date of receiving the ruling in writing or from the date of delivering final judgment, as the case may be;

(3) in respect to person liable to remit value added tax under Section 83/5, 83/6, or 83/7, 2 years as from the last day of filing tax remittance return.

In the case where there is a reasonable cause to believe that a business person, importer or person liable to remit value added tax declares incorrect or incomplete tax return, entry, or tax remittance return, an assessment official shall, with the Director-General approval, assess tax within 5 years as from the prescribed time under (1) (a), (2) or (3), as the case may be.

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Part 13

Fine and Surcharge

Section 89 Person liable to tax or person under Section 86/13 shall be liable to fine in the cases and at the rates as follows:

  1. carrying on business without value added tax registration in accordance with Section 85 or Section 85/1, or business which value added tax registration is cancelled in accordance with Section 85/17, shall be liable to fine twice the tax due in tax month for the duration of failure to comply with such provision, or 1,000 Baht, which ever is greater; 
  2. failing to file tax returns 0r remittance return within the prescribed time shall be liable to fine twice the amount of tax due or remittable in tax month; 
  3. filing incorrect tax return or remittance return affecting the amount of tax due or remittable, shall be liable to fine for the affected amount of tax; 
  4. filing incorrect tax return affecting the output tax or input tax in tax month, shall be liable to fine for the amount of the deficient output tax or excess input tax; 
  5. failing to issue and provide tax invoice to purchaser of goods or service recipient in accordance with Part 10, shall be liable to fine twice the amount of tax shown in tax invoice; 
  6. issuing tax invoice, credit note or debit note without authorization under Section 86/13, shall be liable to fine twice the amount of tax on such tax invoice, credit note or debit note; 
  7. using false tax invoice in tax calculation partly or wholly, shall be liable to tax twice the amount of tax on such invoice; In the case where the user of the tax invoice fails to identify the issuer of the tax invoice, such tax invoice shall be deemed false tax invoice; 
  8. failing to keep a copy of tax invoice for the purpose of output tax as prescribed by law, shall be liable to fine 2 percent of the amount of tax on tax invoice; 
  9. failing to keep tax invoice for the purpose of input tax creditable in tax calculation as prescribed by law, shall be liable to fine 2 percent of the credited amount; 
  10. failing to make report as prescribed by law or other reports as prescribed by the Director-General in accordance with Section 87/1, or there is shortage of goods in goods and raw material report, shall be liable to fine twice the amount of tax calculated on the unreported or incorrectly reported tax base. Fine in this Section may be waived or reduced according to regulations prescribed by the Director-General with Minister’s approval.

Section 89/1 Any person fails to pay or remit tax within the time prescribed in this Chapter shall be liable to surcharge on 1.5 percent of payable or remittable tax excluding fine per month or fraction thereof;

In the case where the Director-General approves the time extension to pay tax as prescribed by Section 3 Octo and such tax is paid or remitted within the extended time, surcharge under paragraph 1 shall be reduced to 0.75 percent per month or fraction thereof;

the calculation of surcharge under paragraphs 1 and 2 shall accrue from the day following deadline of tax return filing or remittance return filing under Part 7 to the date of tax payment or remittance; but the calculated surcharge shall not exceed the amount of tax payable or remittable.

Section 89/2 For the purpose of tax collection, fine and surcharge in this Chapter shall be deemed value added tax.

Part 14

Punishment

Section 90 The following persons failing to comply with the provisions stated below shall be fined not more that 2,000 Baht:

  1. person not providing copy of contract or document under Section 77/4 (2);
  2. VAT registrant failing to file a tax return under Section 83 or Section 83/1; 
  3. person liable to tax failing to file a tax return under Section 83/2; 
  4. person liable to tax return filing failing to file a tax return under Section 83/3; 
  5. person liable to remit tax failing to remit value added tax under Section 83/5, Section 83/6 or Section 83/7; 
  6. importer failing to entry under Section 83/8 or Section 83/9; 
  7. VAT registrant failing to notify changes in particulars of value added tax registration under Section 85/6; 
  8. VAT registrant failing to return a certificate of value added tax registration under paragraph 3 of Section 85/7, paragraph 2 of Section 85/8, paragraph 2 of Section 85/15 or paragraph 2 of Section 85/17;
  9. VAT registrant failing to notify a change of place of business under paragraph 1 of Section 85/8; 
  10. VAT registrant failing to notify temporary business cessation under Section 85/12; 
  11. estate possessor, estate administrator or heir of VAT registrant failing to return a certificate of value added tax registration under paragraph 3 or paragraph 5 of Section 85/16; 
  12. VAT registrant issuing tax invoice, abbreviated tax invoice, credit note or debit note with incomplete particulars in the matter of substance under Sections 86/4, 86/5, 86/6, 86/7, 86/9, 86/10 or 86/11; 
  13. VAT registrant failing to issue certified copy of tax invoice, credit note or debit note under Section 86/12; 
  14. VAT registrant having goods in excess of that reported in goods and raw material report under Section 87; 
  15. VAT registrant making report not in accordance with rule; procedure, and condition prescribed in Section 87 or with provision prescribed by the Director-General under Section 87/1; 
  16. VAT registrant intending not to keep tax invoice, copy of tax invoice or such document not in accordance with rule, procedure and condition prescribed in Section 87/3.

Section 90/1 The following persons failing to comply with the provisions stated below shall be fined not more than 5,000 Baht: 

  1. an agent failing to proceed with the registration of a business person residing abroad under Section 85/2; 
  2. VAT registrant failing to display certificate of value added tax registration under Section 85/4; 
  3. VAT registrant failing to notify the opening of additional place of business or the closing of place of business under paragraph 1 or 2 of Section 85/7; 
  4. VAT registrant failing to notify the transfer of part of business or the receive of transfer of business under Section 85/13; 
  5. VAT registrant failing to notify the cessation of business or transfer of business under Section 85/13 or paragraph 1 of Section 85/15; 
  6. an agent of a VAT registrant residing abroad making reports not in accordance w ith rule, procedure or condition as prescribed by Section 87/2.

Section 90/2 The following persons failing to comply with the provisions stated below shall be sentenced for not more than 1 month or fined not more that 5,000 Baht or both: 

  1. VAT registrant failing to comply with Section 82/18 (2); 
  2. any business person liable to register for value added tax carrying on business without value added tax registration under Section 85/1, paragraph 2 of Section 85/13 or Section 85/14; 
  3. VAT registrant failing to issue tax invoice or its copy, or failing to provide the tax invoice or its copy to the purchaser or service recipient under paragraph 1 of Section 86, or failing to issue and provide tax invoice or its copy to the purchaser or service recipient at the request of the purchaser or service recipient under paragraph 2 of Section 86/8. 
  4. a business person registered for temporary value added tax registration issuing tax invoice not in accordance with rule, procedure and condition as prescribed by the Director-General under paragraph 2 of Section 86; 
  5. an agent issuing tax invoice on behalf of VAT registrant not in accordance with rule, procedure and condition as prescribed by the Director-General under paragraph 4 of Section 86; 
  6. VAT registrant failing to comply with regulations on cash register machines under paragraph 6 of Section 86/6; 
  7. any one not complying with a summons or order of assessment official under Section 88/4.

Section 90/3 The following persons failing to comply with the provisions stated below shall be sentenced for not more than 6 months or fined not more than 10,000 Baht, or both:

  1. an agent of a VAT registrant residing abroad issuing tax invoice without approval under paragraph 2 of Section 86/2 
  2. VAT registrant using cash register machine without approval under paragraph 6 of Section 86/6 or Section 86/7; 
  3. VAT registrant failing to make reports under Section 87 or as prescribed by the Director-General under Section 87/1; 
  4. an agent of a VAT registrant residing abroad failing to make reports under Section 87/2; 
  5. any one obstructing or failing to accommodate the performing of assessment official or acting against the order of an assessment official under paragraph 1 of Section 88/3. 

Section 90/4 The following persons failing to comply with the provisions stated below shall be sentenced from 3 months up to 7 years and fined 2,000 Baht up to 200,000 Baht:

  1. VAT registrant with intention to evade or trying to evade value added tax, issuing tax invoice, debit note or credit note without authorization under paragraph 2 of Section 86 or Section 86/1; 
  2. an agent of VAT registrant residing abroad with an intention or trying to evade value added tax, issuing tax invoices without authorization under paragraph 1 of Section 86/2; 
  3. any one issuing tax invoice, debit note or credit note without authorization under Section 86/13; 
  4. VAT registrant with intention to or trying to evade tax failing to report or making false report stated in Section 87 or as prescribed by the Director-General under Section 87/1; 
  5. VAT registrant with intention to or trying to evade value added tax failing to issue tax invoice, debit note or credit note or their substitute; 
  6. VAT registrant with intention to or trying to evade value added tax acting falsely, fraudulently or by similar nature; 
  7. business person with intention to use false tax invoice or illegally issued tax invoice for tax credit.

Section 90/5 Where the wrongdoing person subject to penalty under this Chapter is a juristic person, the managing director, director or person acting in a representative capacity of such juristic person shall be liable to the penalty as prescribed for such false action, except he can prove that he has no consent or no part in such wrongdoing of the juristic person.

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