Today, we got a question from one of our accounting clients regarding VAT.
I have just purchased a plane ticket for a business trip overseas and the travel agency issued a Tax Invoice/Receipt but shows 0 VAT. Is this correct?
Yes, the receipt is correct. They cannot collect VAT from you when it is air ticket or transportation.
Tour companies; usually have pre-printed form of receipt/tax invoice so they can also use it when they arrange tours, which they need to collect VAT from their clients. When they receive money for just transportation, they cannot collect VAT and this paper should be called only “receipt”. For them to do it correctly, they need to cross out the word “Tax Invoice”, but if they did not do it, it is not your problem because there is no VAT that you will wrongly claim back anyway.
Contact MSNA for your Thailand accounting and tax questions.