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Thailand: Agency keen to alter scrap iron VAT law
The Revenue Department plans to propose to the finance minister revising the value-added tax (VAT) payment law for businesses buying scrap iron for recycling as some firms are issuing fake VAT invoices, says director-general Lavaron Sangsnit.
Mr Lavaron said he would propose downstream smelters in the steel trade be the parties issuing VAT invoices for purchases from scrap iron dealers.
In this business supply chain, the men and women who roam the streets on tricycles collecting used materials and waste are called “saleng”. They sell scrap iron to scrap dealers, who in turn sell the scrap to smelters.
The law requires the scrap dealers to issue VAT invoices to the smelters when they sell scrap to the smelters. The dealers are also responsible for passing the VAT amount to the Revenue Department.
Mr Lavaron said amending the law can curb the issuance of fake VAT invoices by some parties in the industry that claim high VAT refunds.
He said as there are few smelters in Thailand, an amendment will make it easier for the department to focus on examining the smelters’ invoices.
The department currently examines many invoices as there is a vast number of scrap dealers, in addition to the invoices dealers issued to saleng and smelters, said Mr Lavaron.
He said the department already discussed this change with all involved parties and they agreed the change would increase transparency in the sector in terms of VAT payment.
“The amended law is expected to be implemented within this year,” Mr Lavaron said.
Source: https://www.bangkokpost.com/business/2515754/agency-keen-to-alter-scrap-iron-vat-law