4. Monthly VAT Filing and Calculation (Phor Por 30)
After registering for VAT, your company must file a Phor Por 30 form with the Revenue Department every month. This form is used to declare the VAT you owe for that specific month. Timely and accurate filing of this form is essential to ensure compliance with Thai tax regulations.
VAT Calculation:
The basic formula for calculating VAT payable is:
VAT Payable = Output VAT - Input VAT
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Output VAT: This is the VAT you collect from customers when you sell goods or services. For every sale, you charge 7% VAT on the sale price.
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Input VAT: This is the VAT you pay on goods or services your business buys. Generally, you can claim input VAT to offset your output VAT liability.
For your company, Vicky Burmese Amber & Gems Co., Ltd., since you import gemstones from Myanmar without receiving VAT invoices, you will not have input VAT to claim on these imports. As a result, your VAT payable will be based solely on the output VAT collected from customers.
Example of VAT Filing:
Let’s assume your company sold 500,000 THB worth of gemstones in a given month. You would calculate your VAT as follows:
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Output VAT (7% of 500,000 THB) = 35,000 THB
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Input VAT = 0 THB (since there are no VAT invoices from Myanmar imports)
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VAT Payable = 35,000 THB (this is the amount you will need to pay to the Revenue Department)
You must ensure the Phor Por 30 form is submitted and the VAT paid by the 15th of the following month to avoid penalties.
Best Practices for Monthly VAT Filing:
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Always File on Time: The deadline for filing the Phor Por 30 form is the 15th of each month. Failure to file on time can lead to fines of up to 2,000 THB per instance, and interest charges at 1.5% per month on any unpaid VAT.
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Maintain Proper Documentation: It is essential to maintain detailed records of all sales transactions, expenses, and any business purchases that incur VAT. This includes:
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Sales Receipts and Tax Invoices
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Purchase Receipts for business-related expenses where VAT is charged
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Leverage Input VAT on Domestic Purchases: While your Myanmar imports do not allow you to claim input VAT, other business expenses incurred within Thailand may include VAT that can be deducted. Common expenses where input VAT might be claimable include:
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Office supplies
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Marketing and advertising services
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Transportation costs
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Reconcile Accounts Regularly: Ensure that sales figures reported match the sales recorded in your financial records. Any expenses that generate input VAT should be cross-checked with the invoices and receipts.
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Use Accounting Software: Consider using accounting software like QuickBooks, Xero, or Zoho Books to automate VAT tracking and filing. These systems can help you generate accurate VAT reports, simplify filing, and ensure compliance.
Mitigating VAT Risks:
Since your company does not have input VAT from Myanmar imports, managing your VAT liabilities becomes even more critical. You can reduce risks by:
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Planning for monthly VAT payments to ensure cash flow availability.
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Staying updated on changes to tax regulations that may affect your business.
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Consulting with a tax professional or accountant to review your VAT filings and ensure compliance with Thai law.
Conclusion:
Filing VAT monthly using the Phor Por 30 form is a key responsibility for Vicky Burmese Amber & Gems Co., Ltd.. Since your imports do not generate input VAT, focus on ensuring that all output VAT is declared accurately and on time. By leveraging input VAT on domestic purchases and maintaining well-organized financial records, you can reduce your overall tax burden and avoid penalties.