If your new business in Thailand projects to make more than 1,800,000 Baht in revenue per year, then you must go for Value Added Tax (VAT) Registration with the Thailand Revenue Department. Any Thai business that wants to sponsor a foreign worker’s work permit must also register for VAT. A Thai corporation must also register for VAT to obtain some sort of business permit.
Otherwise, it is optional to register for VAT. If a Thai business has significant start-up costs, such as office equipment and design/fit-out services, it may choose to voluntarily register for VAT.
Remember that it is difficult to revoke your VAT registration once you have registered for it. Hence, if you’re thinking about registering voluntarily, don’t make this decision hastily.
If you have decided to go for VAT Registration for your business in Thailand, let us guide you through the process.
Process of VAT Registration in Thailand
The following paperwork needs to be ready to register for VAT:
- Three sets of the P.P.01 form. This is an application form for VAT registration.
- A housing registration letter showing where the company is located with the signature of the building owner (if renting, you must also give a signed copy of your landlord’s national identification card)
- A copy of the passports, visas, and work permits of company directors with their signatures
- A photograph of company headquarters, including a signboard and inside of the offices
- Rental agreement (for rented premises)
- The company registration certificate.
Your landlord might charge you extra if you rent an office so they can issue you a house registration and other necessary paperwork.
You have to send the registration application to your local Area Revenue Office for Bangkok, or to the local Area Revenue Branch Office if elsewhere in Thailand.
However, now you can register online under the guidance of a local Thai tax consulting firm.
What to do after VAT Registration for your Business in Thailand?
Businesses that register for VAT have to do the following on mandate:
- Provide a tax invoice for every sale, charge 7% output VAT on products and services, and send the money you make back to the revenue department.
- A 7% input VAT is also applied to purchases made by the company; this VAT can be deducted from sales VAT. VAT paid on certain goods and services might be subtracted from the VAT that is levied and collected. The business must save the tax invoice from purchases as evidence of the tax credit that can be applied to deductions.
- The P.P. 30 form is mandatory to pay VAT for the previous month by the 15th of every month.
- When paying for a service that is VAT registered, you must file a P.P.3 or P.P.53 form, issue a withholding tax certificate, and withhold tax.
- Together with your company registration, the VAT registration certificate needs to be on display at your company’s physical location.
If you fail to file the P.P.30 form for more than six consecutive months, your VAT registration will be automatically terminated. Also, you will be fined.
Is your business exempted from VAT Registration in Thailand?
Use the list below to see if your business qualifies for VAT registration in Thailand. All business operations with a zero percent VAT rate or exemption from VAT are as follows:
- Small enterprises whose annual turnover is less than 1.8 million baht
- Exported goods
- Services provided in Thailand and consumed out of the country
- Businesses that sell or import unprocessed agricultural products and related goods
- Businesses that sell or import newspapers, magazines, and textbooks
- Businesses that offer the following activities:
– Domestic and international transportation;
– Healthcare provided by the government and public hospitals;
– Education provided by the government and recognized educational institutions;
– Medical auditing services;
– Lawyer services in court;
– Institutions that offer cultural services such as sports, museums, zoos, etc.
– Institutions whose income comes from commerce, agriculture, transport, etc.
– Institutions of investigations, research, and other technical services;
– Activities kept under the supervision of the Customs Department;
– Religious and charitable services;
– Services of government agencies;
– Services of local authorities.
If your business in Thailand commits to yielding a turnover of more than 1,800,000 Baht annually and it is not in the list above, you have to go for VAT Registration in Thailand.
The Bottomline
All entities that are in good legal standing in Thailand must register for VAT. You must retain your company’s books on an annual basis after registering for VAT in Thailand. Consultants and advisors at Konrad Legal will keep your documents up to date while adhering to legal requirements.
Contact our company for more precise details regarding VAT certification in Thailand. Allowing us to assist you with the Value Added Tax will result in successful registration, timely and accurate documentation preparation, and regular, accurate financial record-keeping.
We offer financial management to international companies. So, as quickly as feasible, we can assist you in obtaining the VAT registration number and certificate in Thailand. Financial management for international businesses is one of our services. As a result, we can assist you in obtaining the VAT registration number and certificate in Thailand as soon as feasible. By doing this, you can ensure that you won’t miss the registration deadline or run into problems getting the VAT registration number.
We have a wealth of tax service experience in Thailand. You may count on us to create the value-added tax report for you each month if you choose us. Nonetheless, we will assist you in submitting the paperwork to the Revenue Department monthly.
With our professionals handling every area of your accounting—many of them are native Thai speakers—you won’t have to worry about making any mistakes. Simply email us at officer@konradlegal.com and our team of professionals will get back to you within one Thai working day.
