When company export certain goods, companies may claim a VAT Refund for certain purchases of the raw material used in the exported product however unless the amount of VAT Refund is significant and that your company has proper record keeping, we advise you to think twice before requesting for a VAT Refund. Request for VAT Refund will likely trigger a VAT audit from the Thai Revenue Department before the refund is approved.
The Revenue Department has recognized the needs of exporters and created ‘good exporters’ and ‘registered exporters’. Both classes of exporters are eligible to receive VAT refunds far quicker than the normal process. Under Revenue Department Notification No. Thor. 159/2550 the VAT refunds will be processed as follows:
- ‘Good exporters’ – within 15 – 45 days (15 days for exporters filing VAT returns via e-filing and 45 days for exporters filing VAT returns at a Revenue Department office).
- ‘Registered exporters’ – within 30 – 60 days (30 days for exporters filing VAT returns via e-filing and 60 days for exporters filing VAT returns at a Revenue Department office).
To be eligible for this scheme, business must meet the following criteria:
Good Exporters
- Limited company or public company (VAT registered).
- Paid-up registered capital of THB 10 Million or more (except for exporters with a gold card* status granted by the Thai Custom’s Department).
- Exports account for not less than 70% of the total sales in the last 12 months prior to submitting the ‘Good Exporter Application Form’, or not less than 50% for the exporter with a gold card*. Exports includes the sales of goods between business operators who are carrying on business in an export processing zone (EPZ), whether or not they are in the same zone.
- Continuous operations and must own immovable property e.g. land, building, factory, etc.
- Net assets exceed net debt in the last accounting period prior to submitting the ‘Good Exporter Application Form’.
- Member of a commercial association or private organisation, e.g. Federation of Thai Industries, Thai Chamber of Commerce, etc. and such association or organisation can verify the credibility and reliability of the company’s financial status.
* Gold card exporter scheme is a measure launched by the Thai Custom’s Department to improve the custom’s procedures and boost exports.
Registered Exporter
- Juristic company, partnership or an individual (VAT registered).
- Exports account for not less than 50% of the total sales in the last 12 months prior to submitting the ‘Registered Exporter Application Form’. Exports includes the sales of goods between business operators who are carrying on business in an export processing zone (EPZ), whether or not they are in the same zone.
- Continuous operations and must own immovable property e.g. land, building, factory, etc.
- Net assets exceed net debt in the last accounting period prior to submitting the ‘Registered Exporter Application Form’.
- Member of a commercial association or private organisation, e.g. Federation of Thai Industries, Thai Chamber of Commerce, etc. and such association or organisation can verify the credibility and reliability of the company’s financial status.
For more information, please read Revenue Department Notification No. Thor. 159/2550 or if you require assistance with this matter or Company Incorporation or Import / Export License, please do not hesitate to contact UnionSPACE.
