Thailand: VAT Refund for Good Exporter

In the VAT (Value Added Tax) System, the amount of VAT submission comes from the difference of sales VAT and purchase VAT. In some cases, the sales VAT is lower than purchase VAT. This means the Revenue Department will refund such difference in cash. The exporter will always ask for a refund of VAT due to the sales VAT is equal to zero. To get the refund without any investigation or less waiting time, the exporter should know the “Good Exporter practice”. There are 2 major types of good exporters. 

1. General Exporter

1. Must be a limited company or public company who is VAT registered.
2. Must have paid-up capital more than 10 million Baht up.
3. Must have ratio of goods exported abroad not less than 70% of total sales in the last 12 months prior to submitting the Good Exporter Application Form and have proof of bringing foreign currency into Thailand or a proof that shows the transaction has been set-off.
4. Must have stability and continuity in operations and have ownership rights in immovable property e.g. land, building, factory, and etc.
5. Must have net assets exceed net debt for the last accounting period prior to submitting the Good Exporter Application Form.
6. Must have good tax history, have paid taxes according to the real business situation, and have never avoid paying taxes.
7. Must be a member of commercial association (s) or private organization (s) e.g. Federation of Thai Industries, Thai Chamber of Commerce and etc. and such association (s) or organization (s) can verify the credibility and reliability of the company's financial status.

2. Exporter with Customs Department's Gold Card

1. Must be a limited company or public company who is a VAT registered and an exporter with Customs Department's Gold Card.
2. Must have ratio of goods exported abroad from 50% of total sales in the last 12 months prior to submitting the Good Exporter Application Form and have proof of bringing foreign currency into Thailand or a proof that shows the transaction has been set-off.
3. Must have the same qualifications as (4) - (7) in "General Exporter

In case that Revenue Department refunds the cash, it will be deposited into the stated bank account. To prove the transactions, the exporter must appoint auditor to audit and issue report for every period. This method will help the exporter to get the cash refund in a very short time and less effort to comparing to almost a year for normal practice of tax refund. Earlier refund can ease the cash flow of business

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Reference/ Citation

https://www.rd.go.th/english/16403.html