Thailand
Thailand: Appeals to go forward in VAT refund service dispute
The Revenue Department has allowed two companies that failed to win approval for offering downtown value-added tax (VAT) refund service to foreign tourists during a six-month trial run to file appeals within 15 days after its decision was announced.
The department will take 30 days to deliberate on the appeals before forwarding them to the Finance Ministry for the final say if the department does not agree with reasons stated in the petition, said Pinsai Suraswadi, director of tax policy and planning at the Revenue Department. The Finance Ministry can spend up to 90 days to consider the appeals.
Mr Pinsai insisted that the Revenue Department did not apply double standards nor use criteria to favour a particular group in selecting the downtown VAT refund service provider.
His remarks came after the Thai Retailers Association (TRA) called on the government to think twice about granting Counter Service Co, a payment service provider wholly owned by CP All Plc, the sole concession for offering downtown VAT refund service, out of three applicants.
The retailer group reasons that Siam Paragon, CentralWorld, Central Chidlom, The Emporium and Robinson Sukhumvit are located in areas with the highest tourist density, making them the most appropriate refund points.
Mr Pinsai said recently that one of the failures was not stating in the group’s articles of association that it would engage in offering VAT return service, while another requested to have five VAT refund points, which exceeded the criteria, which limited applicants to three points.
Counter Service is offering VAT refund service to foreign tourists as part of a six-month trial from Oct 1, 2018 to March 31, 2019 at three branches of Counter Service at 7- Eleven convenience stores: Phadung Dao Road in Yaowarat, near Lido Cinema in Siam Square, and at Bangkok Night Bazaar on Rama IX Road.
“We have studied VAT refund points outside airports for a long time and the criteria has never been amended [to be favourable to any group],” Mr Pinsai said. “The department never held any talk with the TRA about the VAT refund service issue, but we’d discussed in a working committee under Pracha Rat to promote tourism and meetings, incentives, conferences and exhibitions. I’m not sure as to whether the retailer association is part of the group.”
In the meantime, Phadcha Pongkeeratiyut, principal adviser on performance improvement at the Revenue Department, defended the cap of three service points for downtown VAT refund operators, as the department has estimated that many applicants would seek the licences and it would be difficult for outcome evaluation if the amount of service points was not restricted.
There were only three applicants when the application was opened, Ms Phadcha said.
“We have no idea as to whether the TRA learned about the criteria that limited three VAT refund service points, but what we can affirm is that our officials informed them about the criteria on the document pickup date,” she said. “We want all applicants to pass the criteria.”
Source: https://www.bangkokpost.com/business/news/1552258/appeals-to-go-forward-in-vat-refund-service-dispute