What to do once a company is registered in the VAT system?
From the day the company has registered in the VAT system of Thai Revenue Department, the company director and the staff member have to always ask for an official receipt from the vendor when buying goods or services for company’s use otherwise, such expense cannot be used to reduce the company’s profit and may end up having to pay more tax. Even when buying goods or services from individuals (who are not companies), they still can issue a receipt or some kind of documents to prove that they received money from the company director or staff member. In this way, the company can have legitimate receipts that are tax deductible.
When asking for an official receipt, if the vendors (companies or individuals) are registered in the VAT system, they normally will ask to charge 7% VAT and because they charge VAT, they will also have to issue a tax invoice for you. It is important to know the information about Thailand VAT and tax invoice.
The company also needs to withhold taxes from vendors. Please read this article about withholding taxes from vendors for better clarifications.
Contact www.msna.co.th for your Thai accounting, taxation and other business needs.
Thailand’s New Law Regarding Tax Invoices
The new law regarding tax invoices will take effect from 1 January 2014. According to this new law, the tax invoice has to have the items on it as follows:
- Under the address and contact number of the company, one must add:
– Headquarters (or in case of a branch office in Thailand, has to add the branch number too so that it can be specified whether the head office or the branch office is the one who issues the tax invoice.)
– Tax ID number, which should be near the company name and address) is the same number as the company’s registration number.
2. Under the address of the customer, add:
– ( ) Headquarters ( ) Branch Number………………..
– Tax ID No.: …………………………………
This is because when a tax invoice is issued to a company in Thailand, the issuer will have to check mark to indicate if the buyer of the goods/service is the headquarters or the branch of that company and need also to specify their Tax ID number which is the same as their company registration number.
Reminder if you are the customer:
From 1 January 2014, when you get a tax invoice from a vendor, please make sure you see their Tax ID number and that they specify headquarters or branch number near their company name on top of the tax invoice. Also, near your company name and address, it must specify headquarters (or branch) and your company’s Tax ID Number.
Know more about this new law regarding tax invoices and Thai taxation related matters. Contact MSNA for your accounting, tax and other business needs.