Section Code: 0077
Value Added Tax: General Provisions
Value added tax is an assessment tax.
In this Chapter, unless the context otherwise requires:
- "person" means a natural person, a non-juristic body of persons, or a juristic person;
- "natural person" includes an estate;
- "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;
- "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;
- "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;
- "VAT registrant" means a business person registered under Section 85 or 85/1, or temporarily registered under Section 85/3;
- "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;
- "sale" means disposal, distribution, or transfer of goods whether or not for benefit or a consideration and shall also include:
- 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,
- delivery of goods to an agent for sale,
- export of goods out of Thailand,
- 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
- shortage of goods in a report of goods and raw material in accordance with Section 87(3) or paragraph 2 of Section 87,
- 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,
- other cases as prescribed in Ministerial Regulations;3
- "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;
- "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:
- 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,
- the use of money for benefit by depositing with banks or purchasing bonds or securities,
- any other actions as prescribed by the Director-General with the Minister’s approval;
- "importer" means a business person or other persons undertaking importation;
- "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;
- "exporter" means a person undertaking exportation;
- "export" means sending goods out of Thailand to a foreign country and shall include:
- 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
- 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;
- "purchase" means receiving transfer of goods or taking delivery of goods sold;
- "price" means money, property or any other benefit calculable into money paid or to be paid for sale of goods or provision of services;
- "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;
- "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
- value added tax paid by a VAT registrant on the import of goods,
- 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,
- value added tax remitted under Section 83/5, 83/6 and 83/7;
- "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;
"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;
- "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;
- "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;
- "tax month" means calendar month, except-
- 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,
- 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,
- 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:
- sale of goods or provision of services by a business person,
- 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.
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.
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.
- 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.
- 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.
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.