THAILAND VAT

[Prakhonchai Nick]

The standard rate of VAT is 10%, but the rate is currently reduced to 7% until 30 September 2020 (unless further extended by the government).

VAT is levied on the sale of goods and the provision of services. Exports are zero-rated, while a number of goods and services are exempt (e.g. basic groceries, education, healthcare, interest, leasing of immovable property, sale of real estate)

With the recent massive government handouts to those affected by Covid -19, and the need to recoup this money, I do not anticipate the government keeping the current 7% VAT rate after 30th September next

Whether it will be 10%, or possibly higher remains unknown, as does whether any increase will be notified as effective immediately or whether notice will be given.

For anyone contemplating a largish purchase. I would recommend that this be done before 30th September next. With a 10% Vat rate a new car or pick-up, for example, will cost upwards of 20,000Baht more!

 

[gotlost]

With a 10% Vat rate a new car or pick-up, for example, will cost upwards of 20,000Baht more!

Up keep on tail will cost more than that.

 

[Prakhonchai Nick]

Up keep on tail will cost more than that.

At least it is not subject to VAT

 

[CO-CO]

Whilst I don't agree with Nick that the rate will rise, his advice is prudent as anything with a postponed increase becomes a target in the current climate.


The VAT rate was reduced from 10% to 7% in 1997 in the Asian financial crisis. All deferred increase dates since have passed without the rate reverting to 10%. Personally, I don't see that this government would want to be remembered as the administration that implemented the increase - despite being fully justified by using Coronavirus as an excuse.

 

[Prakhonchai Nick]

"I don't see that this government would want to be remembered as the administration that implemented the increase"

That's great then. With Prawit and his cronies likely to be in charge indefinitely, 7% it is ...............FOREVER!

 

[CO-CO]

"I don't see that this government would want to be remembered as the administration that implemented the increase"

That's great then. With Prawit and his cronies likely to be in charge indefinitely, 7% it is ...............FOREVER!

Let's hope so...................... no advantage to us in an increase to 10%.

 

[Night Stroker]

With tourist numbers down and not likely to get any better for some time it wouldn't surprise me if the rate goes up. It would help their coffers and after all "It's all about the money".

 

[gotlost]

Excise dept eases tax burden on five businesses
National
Jul 08. 2020

By THE NATION

The Excise Department is set to issue nine new regulations to adjust excise collection in five businesses amid the Covid-19 crisis.
Pachara Anantasilp, the department’s director general, said two ministerial regulations and seven of its own announcements will be published in the Royal Gazette this week before implementation. The main aim of the regulations is to reduce, exempt or expand the collection of excise in five businesses.

Pachara added that tax from tobacco products will stand at 40 per cent until October 1, 2021, before it is increased. This 40 per cent rate was meant to last until October 1 this year.

“Maintaining the tax at this rate for another year will help tobacco businesses during this crisis,” he said, adding that no tax will be collected from entertainment venues from July to September, though operators are expected to continue employing their staff.

In relation to fruit juice, the department will cut the tax down to 3 per cent from 10 per cent, though tax on juice concentrate will not be reduced further as it was already cut from 20 per cent to 10 per cent. Pachara said the lower the concentrate, the lower the tax.

Excise tax on electric tuk tuk will be reduced to 10 per cent from 20 per cent in a move to woo investment.



In addition, the department will expand the period of tax exemption for products sold at airports. Usually no tax is collected from products being sold via airport shops if they remain in the store for 15 days. However, the department decided to extend this period to 30 days and plans to go as far as 120 days if the Covid-19 crisis continues.

Pachara said these adjustments would cost the department at most Bt1 billion, adding that his organization has reduced its collection target this year from Bt64 billion to just Bt6 billion owing to the outbreak.



Tags: