::Chapter 4 Value Added Tax::

Chapter 4 Value Added Tax

Part 1 General Provisions

Section 77 Value added tax

Section 77/1 Definition

Section 77/2 Businesses which shall be subject to value added tax

Section 77/3 Businesses shall not be subject to value added tax

Section 77/4 Duty to submit a copy of contract value not less than 500,000 Baht

Section 77/5 Determine whether the business is sale of goods or provision of service

Part 2 Tax Liability

Section 78 Tax liability for sale of goods

Section 78/1 Tax liability for provision of services

Section 78/2 Tax liability for import

Section 78/3 Tax liability in accordance with Ministerial Regulations

Part 3 Tax Base

Section 79 Total value received or receivable

Section 79/1 export of goods, international transport and tax base in accordance with Royal Decree

Section 79/2 Import of goods

Section 79/3 Tax base calculation

Section 79/4 Convention foreign currency into Thai currency

Section 79/5 Import and sale of tobacco

Section 79/6 Import and sale of crude oil and oil products

Section 79/7 Rules and conditions for calculation of tax base by the Royal Decree

Part 4 Value Added Tax Rate

Section 80 Tax rate of 10.0%

Section 80/1 Business that uses zero tax rate

Section 80/2 Tax rate of 2.5%

Part 5 Value Added Tax Exemption

Section 81 Sale of goods not for export

Section 81/1 Small business as prescribed by Royal

Section 81/2 The Director-General may require the business person to prepare report

Section 81/3 Can apply for value added tax registration

Part 6 Taxpayer and Tax Calculation

Section 82 Taxable person

Section 82/1 Agent act as taxable person

Section 82/2 employee or agent shall be the person liable to value added tax

Section 82/3 Deducting input tax from output tax

Section 82/4 Vat registrant charge value added tax from the purchaser of goods or services

Section 82/5 Input tax that shall not be deductible in tax calculation

Section 82/6 Input tax allocation

Section 82/7 Selling of tobacco prescribed by the Director-General

Section 82/8 Selling crude oil and oil product in accordance with Section 79/6

Section 82/9 Debit note in accordance with Section 86/9

Section 82/10 Credit note in accordance with Section 86/10

Section 82/11 Writing off of bad debt

Section 82/12 Zero rate value added tax and later on there is a transfer of ownership

Section 82/13 Business person from abroad liable to value added tax and pay value added tax

Section 82/14 Importer liable to value added tax and pay tax

Section 82/15 The transferee of importing goods classified in duty exemption and later on there is a transfer of ownership, liable to value added tax and pay value added tax

Section 82/16 Tax rate of 2.5 is prohibited from changing value added tax

Section 82/17 Business person from Section 82/16 when pay value added tax cannot again apply section 82/16

Section 82/18 Vat registrant in accordance with Section 8/12 wishes to calculate value added tax in accordance with Section 82/3 or has value of tax base exceeding limit of Section 82/16

Part 7 The Filing of Returns and Payment of Taxes

Section 83 Filing a tax return on the basis of tax month

Section 83/1 Some category can file a tax return and pay tax on a periodical basis not exceed 3 months

Section 83/2 Taxable person under Section 82/1 and 82/2 file a tax return and pay tax similarly to a VAT registrant

Section 83/3 Person who be required to file a tax return on behalf of a VAT registrant

Section 83/4 VAT registrant can file an additional tax return

Section 83/5 An auctioneer be required to remit value added tax

Section 83/6 The payer for goods or services be required to remit value added tax

Section 83/7 The transferee of goods or right in services which are zero rate be required to remit value added tax

Section 83/8 An importer shall pay value added tax to custom official together with payment of import duties

Section 83/9 In the case of taking goods into bonded warehouse under the customs law

Section 83/10 The Customs Department and the Excise Department collect value added tax for the Revenue Department

Part 8 Tax Credit and VAT Refund

Section 84 An excess tax credit of each tax month or value added tax refund

Section 84/1 Conditions for value added tax refund

Section 84/2 A value added tax refund on importation

Section 84/3 An interest for refunded value added tax

Section 84/4 Rule for outbound traveler to claim for value added tax

Part 9 Value Added Tax Registration

Section 85 Apply for value added tax registration before the date of business commencement

Section 85/1 Time limit for applying for value added tax registration

Section 85/2 Agent be responsible for value added tax registration

Section 85/3 Case that shall not be required to register the value added tax or shall apply for temporary value added tax registration

Section 85/4 Display certificate of value added tax registration

Section 85/5 Certificate is lost, destroyed or damaged

Section 85/6 Notify changes in essential particulars in value added tax registration

Section 85/7 Notify additional place of business

Section 85/8 Notify when move a place of business

Section 85/9 Temporary specific place of business

Section 85/10 Request the Director-General ti cancel certificate

Section 85/11 When value of tax base exceeding that of small business

Section 85/12 Notify when temporarily cease the business

Section 85/13 Notify when transfer business

Section 85/14 When VAT registrant, being a juristic person, merge

Section 85/15 Notify when ceasing the business

Section 85/16 VAT registrant, being an individual, dies

Section 85/17 Cancel the value added tax registration

Section 85/18 Person who liable as a VAT registrant in case of cancels the certificate, ceases the business or dies

Section 85/19 Cases that the Director-General strike off VAT registrant

Part 10 Tax Invoice, Debit Note, Credit Note

Section 86 Issue tax invoice and its copy

Section 86/1 Prohibits to issue tax invoice in some cases

Section 86/2 Having an agent to issue tax invoice

Section 86/3 The auctioneer issue tax invoice

Section 86/4 Particulars in the tax invoice

Section 86/5 The tax invoices which be prescribed by the Director-General to contain other particulars

Section 86/6 Tax invoice of retail business, abbreviated tax invoice

Section 86/7 Request for abbreviated tax invoice and/or use cash register machine

Section 86/8 VAT registrant that not be required to issue tax invoice unless the purchaser request the tax invoice

Section 86/9 Issuing debit note

Section 86/10 Issuing credit note

Section 86/11 The Director-General allowstriked off VAT registrant to issue temporary tax invoice

Section 86/12 Issuing a substitute for tax invoice

Section 86/13 Prohibit a non VAT registrant in issuing tax invoices

Section 86/14 Receipt issued by the Revenue Department, the Customs Department or Excise Department be deemed a tax invoice

Part 11 Preparation of Report and Keeping of Evidence and Document

Section 87 Output tax report, input tax report and goods and raw material report

Section 87/1 The Director-General direct the VAT registrant to make different report

Section 87/2 The Director-General order an agent of a VAT registrant

Section 87/3 Keeping tax invoice, report and other documents

Part 12 Power of Assessment Official

Section 88 The cases where assessment official assess value added tax, fine and surcharge

Section 88/1 Power to assess value added tax in the case where tax invoice issued without an authorization

Section 88/2 Power to make, correct tax return, assess tax where there is an evidence on underpaid tax

Section 88/3 Power to enter into a place of a business person to investigate

Section 88/4 Power to issue summons

Section 88/5 Notify assessment in writing

Section 88/6 Period of time for an assessment

Part 13 Fine and Surcharge

Section 89 Cases which be liable to fine and the tax rates

Section 89/1 Surcharge

Section 89/2 Fine and surcharge be deemed value added tax

Part 14 Punishment

Section 90 Be fined not more than 2,000 Baht

Section 90/1 Be fined not more than 5,000 Baht

Section 90/2 Be sentenced for not more than 1 month or fined not more than 5,000 Baht or both

Section 90/3 Be sentenced for not more than 6 month or fined not more than 10,000 Baht or both

Section 90/4 Be sentenced from 3 months up to 7 years and fined from 2,000 Baht up tp 200,000 Baht

Section 90/5 The managing director, director or person acting in a representative be liable to a penalty