Applying for VAT registration

Vat (Value Added Tax) is one of the most commonly heard taxes, that is a tax on the sale of goods, both domestically produced and imported from abroad or services provided by operators. Currently, the vat rate in Thailand is charged at 7%, which if observed carefully will see that this type of tax will be clearly recorded on the tax invoice received after purchase goods or services. After that, the entrepreneur will submit this tax to the Revenue Department and enter the country’s treasury for spending and developing the country Including being used in the administration of the country and returning to the people in the form of various welfare related to living from birth until death.

The process of vat registration

1. Prepare documents as follows :

P.P. 01 form
A copy of house registration or proof of actual residence with a copy.
National ID card and tax ID card with their copy.
The building or real estate lease agreement on which the establishment is located in case of rental, or the letter of consent to be used as the location of the establishment and proof of ownership such as being the host, purchase and sale contract, apply for house number, ownership transfer certificate, sub-lease agreement with a copy of the house registration which is the location of the establishment and photographs of such
documents.
Partnership establishment letter with photographs of such books in the case of an ordinary partnership or group of persons.
Letter of affidavit from the company registrar with objectives, Memorandum and Articles of Association, and commercial registration certificate with photographs of such books (in the case of a juristic person)
Identification card of the director, manager or managing partner and a copy of the house registration with photographs of such documents
Map showing the location of the establishment in a nutshell and photograph of establishments.
In the case of authorizing another person to act on his or her behalf, a Power of Attorney with a duty stamp of 10 baht is required, identification card of the grantor and the authorized person with a photo of the card. The authorized person must be over 20 years

2. Vat registration can be done in 2 ways:

Submit via the internet at www.rd.go.th
Submit the applying form in paper at the registration office where the place of business is located at the following locations:
- In case the establishment is located in Bangkok, submit at the Area Revenue Office or through the Revenue Branch Office (district) where the establishment is located.
- In case of establishment located in other provinces out of Bangkok, submit at Revenue Branch Office (District) where the establishment is located.
- In case there are several establishments, the registration application can be submitted at the Area Revenue Office or Revenue Branch Office where the head office is located. If there is no place of business that is the head office, entrepreneurs have to choose any places of business as their head office.
- In the case of the establishment is located in a new location where the Revenue Office is not located, it must be submitted at the Revenue Branch Office (district) that used to control that locality.
- In the case of entrepreneurs under the supervision of the Bureau of Large Business Tax Administration, apply for registration at the Bureau of Large Business Tax Administration or it can be filed through the Area Revenue Office or Area Revenue Branch Office where the place of business is located. The total processing time is 45 days.

VAT registration fee

There are currently no vat registration fees.

The difference between a VAT registered company and a Non-VAT registered company.

VAT registration has the following advantages

increase credibility
Entrepreneurs can use the VAT registration certificate (P.P.20) to contact business partners, and make your business appear more credible because it confirms the identity of the business that it really exists in the revenue system.
more customer base
Most customers often need a tax invoice when shopping or paying for services because they need to use this part of the input tax for tax deduction. Therefore, it gives the business an opportunity to have more customers.
purchase tax can be refunded
The business can use the purchase tax to request a tax refund. For example, when a business buys goods at a price of 1,000 baht, there will be an input tax of 70 baht, which businesses registered for VAT can claim a refund of 70 baht, unlike businesses that do not register for VAT, which cannot claim this tax refund. Therefore, vat registration reduce the cost of the product.
More systematic accounting
When the business registers for VAT, Entrepreneurs are responsible for issuing tax invoices, Issuing a purchase tax report, Sales tax report, and submit P.P. 30 form within the 15th day of the following month, so when there is a transaction occurring, it must be recorded in the input tax report, sales tax and make the business have a systematic accounting.

PMP SERVE, VAT registration services

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