In a move aimed at enhancing the experience of foreign visitors, the Thai government has recently introduced new regulations to streamline the value-added tax (VAT) refund process for goods purchased within the country.
The updated regulations, effective since January 1 this year, come with significant changes to the eligibility criteria and maximum refund amounts, providing a more convenient and efficient system for tourists.
Easing Airport Congestion and Simplifying Procedures
One of the major improvements focuses on reducing congestion at airports, where visitors previously faced long queues when claiming VAT refunds. To address this issue, the Revenue Department has redefined the criteria to better suit the current circumstances, ensuring a smoother VAT refund process for tourists.
Higher Thresholds and Expanded Goods Categories
The previous requirement of declaring goods to customs for a VAT refund, applicable to purchases exceeding 5,000 baht (US$140), has been revised.
The new threshold has been raised to 20,000 baht, allowing tourists to directly request a VAT refund from the Revenue Department for goods valued below this amount, bypassing the customs procedures.
Moreover, the list of goods requiring declaration has been expanded to include items such as jewellery, golden ornaments, watches, eyeglasses, smartphones, and laptops or tablets.
Adjustments to value thresholds have been made, with certain items set at 40,000 baht and items suitable for carry-on reaching 100,000 baht.
Conditions for VAT Refund Requests
To be eligible for a VAT refund, tourists must adhere to specific conditions, including taking the purchased goods outside Thailand within 60 days from the date of purchase.
The total purchased amount should be at least 2,000 baht (including VAT) on the same day from businesses displaying the “VAT Refund for Tourists” sign.
Flexible Refund Options
For tax refund amounts not exceeding 30,000 baht, tourists have the option to receive the refund in cash (THB) as a draft or have it transferred to a credit card account. However, if the refund amount surpasses 30,000 baht, it will be issued as a draft or transferred to a credit card account.
Here’s a quick rundown of the new and improved VAT refund system:
| Requirement | Details |
|---|---|
| Minimum purchase for refund | 2,000 baht (including VAT) per day per shop displaying the “VAT Refund for Tourists” sign |
| Total purchase threshold | 5,000 baht (unchanged) |
| Customs declaration threshold | Increased from 5,000 baht to 20,000 baht |
| Expanded declarable items | Minimum purchase for a refund |
| Value thresholds | Adjusted to 40,000 baht for specific items and 100,000 baht for carry-on items |
| Refund methods | Up to 30,000 baht in cash (THB) via draft or credit card transfer; above 30,000 baht via draft or credit card transfer only |
| Time limit | Purchased goods must be taken out of Thailand within 60 days of purchase |
These progressive changes underscore the Thai government’s commitment to creating a more tourist-friendly environment and enhancing the overall visitor experience. The updated regulations aim to strike a balance between simplifying procedures and ensuring the integrity of the VAT refund system.
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