In Thailand, it is not mandatory to register for company as a VAT Company when your revenue is below THB1,800,000 per financial year however registering as a Value-Added Tax (VAT) company in Thailand can provide a number of benefits for businesses. Some of these benefits include:
- Increased Credibility: Registering as a VAT company can improve the credibility of a business, as it shows that the company is compliant with tax laws and regulations and is committed to operating transparently.
- Ability to Claim Input Tax Credits: VAT-registered companies in Thailand can claim input tax credits on taxes paid for goods and services that are used for their business operations. This can help to reduce the overall tax burden on the business.
- Improved Record-Keeping: VAT registration requires businesses to maintain detailed records of their sales and purchases, which can improve the overall financial management and organization of the business.
- Increased Trust of Customers: VAT registration also gives an increased level of trust and security to customers who would like to do business with VAT registered company as it shows the company is legally compliant.
However, registration for VAT also comes with some obligations like filing VAT returns, maintaining records, and forgoing certain exemptions. Before registering for VAT, it is important to consider the costs and benefits and to consult with a tax professional.
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