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Thailand: VAT refund lures few buyers at outset
The value-added tax (VAT) refund for Chinese New Year shopping has received a lukewarm response, with a mere 7,000 people registering for the perk.
Since registration opened on Jan 7, only 7,000 of 20 million debit card holders have signed up to get VAT back from spending at participating shops during Feb 1-15, said Lavaron Sangsnit, director-general of the Fiscal Policy Office (FPO).
But the number of registrants is expected to exceed 100,000 by the time the registration period for consumers concludes at the end of this month, and after the FPO and 17 banks promote the refund scheme, he said.
More than 15,000 participating merchants have signed up so far, Mr Lavaron said.
Under the terms approved by the cabinet in December, refund claimants are required to pay via debit card or QR code and must register to participate in the scheme at www.epayment.go.th.
The move is aimed at encouraging people to pay more through electronic channels, he said, rather than prompting a domestic spending spree to cushion against external headwinds.
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 must spend 21,400 baht.
Purchases made using the government’s welfare smartcards are not entitled to the VAT payback.
Shoppers will receive the refund through accounts connected with PromptPay by November.
Alcohol, tobacco, refined oil and related products, cars, and motorcycles are exempt from the refund.
Shops participating in the VAT refund 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 Lavaron said the scheme is not geared towards examining individuals’ tax payments.
To facilitate the scheme, the Finance Ministry and the Thai Bankers’ Association have agreed to allow spending from up to 10 debit cards instead of just one as previously required.
Source: https://www.bangkokpost.com/business/news/1616778/vat-refund-lures-few-buyers-at-outset