VAT Registration Services in Thailand
Value added tax (VAT) registration services
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Value added tax (VAT) registration services
Our team assists with VAT registration in Thailand, including document preparation and submission through the appropriate Revenue Department channel. Contact us to discuss the requirements for your business.
Value Added Tax (VAT Registration)
Before presenting the details of our VAT registration or value added tax registration services, Greenpro KSP would like to explain the meaning of value added tax, commonly referred to as VAT (Value Added Tax), so that we share a common understanding before you decide to register for VAT.
Value added tax (VAT) is an indirect tax that sellers of goods or service providers must collect from consumers who purchase the goods or services. VAT-registered business operators, whether juristic persons such as companies and partnerships or even individual business operators, who sell goods or services to customers after registering for VAT, must add value added tax (VAT) to the selling price of the goods or the service fee at a rate of 7% of the normal price of the goods or service. For example, for goods or a service with a normal price of 1,000 baht, the business operator must add value added tax
at a rate of 7% of the 1,000-baht price of the goods or service. The business operator or shop must therefore sell the goods at 1,070 baht. The business operator will receive a total of 1,070 baht, including value added tax, from the sale of the goods or service, of which 1,000 baht is the payment for the goods or service, while the remaining 70 baht is the 7% value added tax (VAT) that the business operator must remit to the Revenue Department.
Note: The current value added tax (VAT) rate is 7%.
Who Is Required to Register for Value Added Tax (VAT)
- Business operators selling goods or services, including importers of goods, whether individuals or juristic persons, with revenue exceeding 1.8 million baht per year must file an application for value added tax registration (Form P.P.01) within 30 days from the date on which revenue exceeds 1.8 million baht. For juristic persons, whether revenue reaches 1.8 million baht per year is determined by accounting period, in cases where the juristic person’s accounting period does not coincide with the calendar year; for individuals, the calendar year applies. If revenue in that year does not reach the threshold (1.8 million baht), the business is exempt from VAT registration for that year, and revenue is counted afresh in the following year to determine whether it reaches the threshold. (Company/partnership business operators that need to issue VAT tax invoices to trading partners or customers may apply for VAT registration with the Revenue Department even if their revenue does not yet exceed 1.8 million baht.)
- Business operators selling goods or services that are not exempt from value added tax
Individual business operators who wish to issue tax invoices may also apply for VAT registration. The VAT registration procedures for individuals and for juristic persons require slightly different documents.
Businesses Not Required to Register for VAT
The following businesses are exempt and are not required to register for VAT, or value added tax, even if their revenue exceeds the threshold
Penalties for Not Registering for Value Added Tax (VAT) as Required by Law
Business operators selling goods or services that are not exempt, once their revenue exceeds 1.8 million baht per year, must apply for VAT registration, or value added tax registration, within 30 days from the date their revenue exceeds the threshold. If a business operator does not register for value added tax (VAT) within this period, the law prescribes the following penalties:
- The business operator is liable to imprisonment of not more than 1 month or a fine of not more than 5,000 baht, or both
- The business operator must pay 7% value added tax on sales of goods and services exceeding 1.8 million baht to the Revenue Department until VAT registration is completed. For example, a business operator with revenue of 2 million baht, which exceeds the legal threshold, and that has not registered for value added tax must pay the Revenue Department 7% value added tax on the 200,000 baht of revenue above 1.8 million baht (200,000 x 7% = 14,000 baht)
- The business operator must pay a penalty of 2 times the value added tax payable in each tax month throughout the period of non-registration, or 1,000 baht per tax month, whichever is greater
- The business operator must pay a surcharge at a rate of 1.5% per month or fraction of a month on the tax payable
- The business operator will not be entitled to deduct the value added tax charged on purchases of goods or services from other VAT-registered business operators from the business’s output tax
Basic Documents for Value Added Tax (VAT) Registration
The documents used for VAT registration, or value added tax registration, for companies, partnerships and individuals are as follows:
- VAT registration application forms P.P.01 and P.P.01.1
- Copy of the house registration of the place of business
- Documents showing the ownership rights of the owner of the place of business premises, namely a copy of the house registration, the land title deed, the sale and purchase agreement or the house number request
- Copy of the lease agreement or letter of consent to use the premises, as the case may be
- Photos of the inside and outside of the place of business
- Copies of the ID card and house registration of the authorised directors of the applicant juristic person, in the case of a juristic person, or of the applicant,
in the case of an individual - Copy of the juristic person affidavit (certificate of registration) of the company/limited partnership, or the commercial registration certificate, as the case may be
Business Operators' Duties After VAT Registration
- Business operators must collect value added tax from the buyers of their goods and services, and must issue tax invoices to the buyers of the goods and services as evidence of the value added tax collected
- Business operators have a duty to prepare value added tax reports (input tax report, output tax report, and inventory and raw materials report)
- Business operators must file a tax return (Form P.P.30, monthly VAT return) to pay value added tax to the Revenue Department
How to Calculate Value Added Tax
VAT payable = output tax − input tax
If output tax is greater than input tax = there is VAT payable
If output tax is less than input tax = you are entitled to a tax refund or a tax credit
Value Added Tax Registration Services (VAT Registration Services)
Greenpro KSP Consulting Co., Ltd. provides VAT registration and value added tax registration services to business operators, both juristic persons and individuals, who wish to register for value added tax. We handle VAT registration through 2 channels: online VAT registration through the Revenue Department’s system, or preparation of the set of VAT registration documents and filing at the area revenue office where the place of business is located.
Greenpro KSP provides value added tax registration at a reasonable price, handling everything from reviewing documents and filing the VAT registration until you receive your VAT registration number, with a highly experienced professional team and staff able to communicate in English. Suitable for both Thai companies and businesses with foreign co-shareholders.
Interested in Our Services? Contact Us
Contact Greenpro KSP Consulting Co., Ltd.
Address: 43 Thai CC Tower, 11th Floor, Room 111, South Sathorn Road, Yannawa, Sathorn, Bangkok 10120
Mobile: 094-864-9799
LINE Official Account: @greenproksp
E-mail: surapa@greenproksp.com