Thailand
Thailand: Channel for VAT refund added
The Finance Ministry has extended a payment channel that is eligible for the government’s value-added tax (VAT) refund scheme for shopping during Chinese New Year, adding QR code payment to debit cards as originally planned.
Those entitled to the VAT refund from shopping during Feb 1-15 must be Thai nationals, said Finance Minister Apisak Tantivorawong.
For shops participating in the VAT refund, he said they must be VAT registrants equipped with point-of-sale terminals that are linked with electronic data capture devices to enable spending information to be directed to the Revenue Department. Shops are required to sign up at the Comptroller-General’s Department.
Mr Apisak said the additional payment channel for the shopping tax breaks was approved by the cabinet on Wednesday.
According to the cabinet’s approval in December, refund claimants are required to pay via debit cards with savings accounts linked to PromptPay at shops.
Qualified shoppers will be eligible for a 5% VAT refund for every purchase of products and services that includes VAT. The remaining 2% of VAT will go to the government’s coffers. To receive the maximum 1,000-baht VAT refund, shoppers will be required to spend 21,400 baht during the scheme.
Spending using the government’s welfare smartcards is not entitled to the VAT payback. Spenders are to receive their money back through accounts connected with PromptPay within 15 days after spending.
Purchase of alcohol, tobacco, refined oil and related products, cars, and motorcycles are not entitled to the shopping tax incentive.
Mr Apisak recently said he hopes the VAT refund scheme prompts a spending spree, helping to maintain the country’s economic growth at 4% or above next year.
The government wants to pump up the domestic economy to cushion against a global economic slowdown through a raft of economic stimulus measures, including a 86.9- billion-baht splurge on low-income earners, the elderly and retirees, a VAT return policy for recipients of the government’s welfare and subsidy scheme, and a shopping tax break for the New Year period.
The New Year shopping tax break, from Dec 15, 2018 to Jan 15, 2019, lets individual taxpayers deduct up to 15,000 baht in taxable income, but limits purchases to only tyres, books and One Tambon One Product items. Taxpayers can deduct their taxable income in either 2018 or this year, depending on the date of purchase.
Source: https://www.bangkokpost.com/business/news/1605010/channel-for-vat-refund-added