Losses or damage to goods and assets are not regarded as sales of goods and assets and therefore, no VAT is payable.

Claims paid by insurers for lost or damaged goods and assets, as well as for business interruption, are not subject to VAT because they are not regarded as consideration for sales of goods or provision of services.

However, if damaged goods or assets are sold to others, including the insurer, VAT must be paid on the proceeds.

Contact MSNA, Thailand Accounting firm, for your tax and accounting questions.