What is VAT ❓ Who has to register for VAT ❓

What is VAT ❓ Who has to register for VAT ❓

👉 What is VAT?

VAT is a tax charged on the value of the purchase or sale of services and imported goods. The Revenue Department is responsible for collecting this tax. The VAT rate is 10%, but special legislation has been reduced to 7% and an annual renewal method is used.

👉🏻 Who has to register for VAT (VAT registration)?

The law stipulates that VAT is a tax that sellers of goods or services that sell products or services in excess of 1.8 million baht / year must register for VAT.

– Is it necessary to be a company or not?

It doesn't have to be in the form of a company. Whether you are doing business as an individual or a legal entity If the income from business operations exceeds 1.8 million baht, VAT registration is something that should not be forgotten

– VAT collected from whom? Who pays?

VAT is a tax levied on consumers. “The consumer pays the tax.” The seller or service provider does not pay this VAT.

– And who is considered a consumer?

to easily understand Consumers are people who do not register VAT, whether they are ordinary people. company employee and including non-VAT registered companies

– Who is the seller or service provider?

A seller or service provider that does not have to pay VAT. This is a seller or service provider that has registered VAT. This can be an individual form such as a street shop or an online merchant who is not open for a company. But if sales exceed 1.8 million baht, VAT must be registered.

👉🏻Who is legally 'exempt' from VAT?

- Business operator selling agricultural products Live or non-living animals, manure, fish meal, fodder Medicines or chemicals used for plants or animals, newspapers, magazines or textbooks.

- Business operators selling products or providing services which is not exempt from VAT by law and has income of not more than 1.8 million baht per year

- Providing transportation services in the Kingdom by airports

- Export of entrepreneurs in the export industrial zone according to the Industrial Estate Authority of Thailand

- Service of transportation of fuel via the pipeline in the Kingdom

* To be exempt from VAT by law But the shop owner has the right to request for VAT registration.

👉 Who doesn't have to register for VAT?

- Entrepreneurs with income from selling products or providing services of not more than 1.8 million baht per year

- Entrepreneurs selling products or providing services that are exempt from VAT by law

- Operators who provide services from abroad and have used that service in the Kingdom

- An entrepreneur who resides outside the Kingdom and enters the business of selling goods or providing services in the Kingdom from time to time (must be in accordance with the conditions of the Revenue Department)

- Operators who have been announced by the Revenue Department

👉🏻 Who collects VAT?

As in the preceding paragraph, it can be seen that VAT will be collected from the consumer. And the person who is responsible for collecting VAT is Sellers or service providers who have registered VAT

👉 sales tax is

Sales tax is VAT collected from customers and businesses that must be submitted to the Revenue Department. The business will collect VAT plus the cost of goods or services. (tax-included price) or separate tax (price separate tax)

Prices including tax are often used in B2C businesses or businesses that sell goods or services to the general public. because of the general public Always look at the value of goods and services Tax-separated prices are often used in B2B businesses or businesses that sell products or services to businesses. Because customers in the business sector will look different from the general public, that is, they do not look at VAT as an expense. or the cost included in the goods/services Because in the business sector, customers often register VAT and can request VAT to repurchase.

Many people may misunderstand that VAT is our business money. But in reality, the VAT that a business charges its customers is “not” the business money and “not” the business income. But it's the government's money that the company keeps. So take it easy, don't be dramatic, think you'll have to pay taxes to the state every month because VAT is not our money.

👉 Purchase tax is

Input tax is the VAT that the seller of goods/services collects from us. (Buyer's business) and can be refunded or deducted with sales tax.

👉 What is P.P. 30?

Por Por 30 is a summary form for input tax and sales tax. To bring this information to the Revenue Department, which must be submitted every month by the 15th day of the following month. or can be submitted online as well The filing of the Por Por 30 form will collect all trading activities that occur within each month. which if there is no trading volume at all can be delivered empty

👉🏻What do I need to prepare for filing P.P. 30?

Preparing and preparing documents for filing P.P. 30, the original purchase tax invoice must be kept. and a copy of the sales tax invoice each month to make a report on input tax and sales tax Then submitting to the Revenue Department will have to do 2 documents together, that is, Por Por 30 and the Por Por 30 attachment, which is the details of input tax and sales tax in that month.

👉🏻When do I have to submit VAT?

VAT registered businesses must file their taxes by the 15th of the following month, for example if there is a transaction of goods/services with VAT in June. Businesses must file their tax returns by the 15th of July and if the 15th of July is a holiday. You can submit your tax return until the next business day. and if any business registered to file tax returns via the Internet There will be an additional 8 days for filing taxes than usual.

👉🏻How much VAT do I have to pay?

– VAT that must be remitted to the Revenue Department is “sales tax less input tax” or is the amount we have to remit (sales tax) less the amount we have to refund from the revenue (input tax).

– If sales tax > input tax, you must remit the tax to the IRS. equal to the difference between sales tax and input tax

– But if input tax > sales tax, you can refund the difference between sales tax. with the purchase tax (refundable) or the refundable tax can be applied in the following month (non-refundable).

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