Vicky Burmese Amber & Gems Co., Ltd., a company specializing in the importation of gemstones from Myanmar, particularly amber, is now entering a crucial phase by transitioning into Thailand’s VAT system (Value Added Tax), at a rate of 7%. Since your company does not receive VAT invoices or declare the value of imports properly when bringing in goods from Myanmar, preparing for VAT registration and compliance can be challenging.

 

This guide is designed to provide detailed instructions and practical examples to ensure that you are well-prepared for this transition, even if you have no prior tax knowledge. The goal is to help you manage your documents, prepare monthly filings, and close your accounts at the end of each fiscal year, while minimizing tax liabilities.

 

Company Information:

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  EN: 

• Company Name: Vicky Burmese Amber & Gems Co., Ltd.

• Tax ID: 0105560075361

• Shop Address: 919/1 Jewelry Trade Center Building, No. B1-JB144, Silom Road, Silom, Bangrak, Bangkok 10500, Thailand

• Office Address: 388 Sita Building, Room 504A, Silom Road, Silom, Bangrak, Bangkok 10500, Thailand

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  TH: 

• Company Name: บริษัท วิกกี้ เบอร์มีส แอมเบอร์ แอนด์ เจมส์ จำกัด

• Tax ID: 0105560075361

• Shop Address: 919/1 อาคารจิวเวลรี่เทรดเซ็นเตอร์ บี1-เจบี 144 ถนนสีลม แขวงสีลม เขตบางรัก กรุงเทพมหานคร 10500

 

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1. VAT Registration Process (Phor Por 20)

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• Phor Por 20: Form required to register for VAT with the Revenue Department.

• Documentation: Company Registration, Phor Por 01 (Tax ID), corporate documents, and proof of business location.

• Post-registration: Must charge 7% VAT on sales, file monthly VAT returns, and maintain records.

 

2. Issuing Tax Invoices

• Requirements: Include company name, address, tax invoice number, description of goods, and VAT breakdown.

• Example: If selling jewelry for 100,000 THB, charge 7,000 THB VAT, making the total 107,000 THB.

 

3. Managing Input and Output VAT

• Output VAT: VAT collected from sales, declared monthly.

• Input VAT: VAT paid on purchases, deductible from output VAT.

• Challenges: No input VAT from Myanmar imports, but can claim input VAT on local expenses.

 

4. Monthly VAT Filing (Phor Por 30)

• Formula: VAT Payable = Output VAT - Input VAT.

• Example: For 500,000 THB in sales, pay 35,000 THB VAT if no input VAT from imports.

 

5. Monthly Document Preparation

• Key Documents: Sales invoices, purchase invoices (if applicable), sales report, and expense report.

• Goal: Organize documents to ensure accurate VAT filings and avoid penalties.

 

6. Annual Financial Closing

• Year-End Submissions: Include sales/revenue records, expense reports, and import documentation.

• Purpose: Ensure compliance and prepare for tax audits.

 

7. Tips for Efficient VAT Management

• Maximize Expenses: Increase VAT-claimable expenses (e.g., office supplies).

• Keep Import Records: Maintain documentation for imports, even without VAT invoices.

• Consult an Accountant: Regularly seek professional advice for compliance and to avoid errors.

 

Conclusion

 

Effective VAT management is essential for long-term success and legal compliance, especially for companies like Vicky Burmese Amber & Gems Co., Ltd. operating internationally. While transitioning into Thailand’s VAT system can seem challenging, it becomes manageable by following proper procedures, such as meticulous document organization, issuing accurate tax invoices, and preparing monthly reports.

 

Understanding VAT obligations, including handling complexities like input VAT on Myanmar imports, is vital to avoid penalties and ensure smooth operations. Regular consultations with tax experts help optimize processes, minimize liabilities, and stay updated with tax law changes. Focusing on these practices ensures compliance and positions the business for sustainable growth in Thailand.

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