Today, THAI ACCOUNTANT got an inquiry about Thailand VAT on reimbursement for toll fees .
I own an agency for travel & tours around Thailand. We hire the vans and
driving services from another company. It is specified in our transport rental
agreement that we are responsible to pay for toll fees but in practice, their
drivers pay for the toll fees first whenever we have tours and we reimburse those
fees to them later. Should this reimbursement of toll fees be included in their
service fee and we have to pay VAT on it?
As long as there is an evidence or proof that you are reimbursing the toll fees to
the vendor company based on the toll fees receipts, the toll fees are not
considered as part of the service fees and thus, not subject to VAT.
Contact MSNA for your Thailand accounting and tax questions.