Phor.Phor. 36, the VAT form that you must know
Those that are not VAT registered may feel they need not read on. Stop reading at your peril! In some cases, you may need to file VAT even if you are not VAT registered.
Under Thai VAT laws, if any company outside Thailand performs a service overseas and output of that service is being used inThailand, then that activity is considered as providing a service in Thailand and the overseas provider has to submit 7% VAT of the fee. But, since the company is overseas, the tax department requires the payer in Thailand to file VAT on behalf of the service provider by using the Phor. Phor. 36 form within the 7th of the following month after payment.
What are services provided overseas and being used in Thailand?
1) A company in Thailand hires B company overseas to provide consultancy on the administration, management etc. B company provides this service by sending staff to Thailand, or through fax, phone, mail and/or email to A company.
2) A company in Thailand buys a software license from B company overseas, no matter that the software is specially developed for C company or that it is a packaged software.
3) A company in Thailand hires B company overseas to design a golf course, villa, apartment etc.
4) A company in Thailand uses Internet-related services of B company overseas, such as:
* advertise its goods or services through the Internet;
* rent a space on the website or on a server; and
* use Internet services or services to connect to an Internet service provider.
Now you can see if you are acting as A company in the above examples, no matter whether you are a VAT registrant or not, you have a duty to file Phor. Phor. 36 at 7% of what you've paid B company within the 7th of the following month after payment.
For example, if you paid on 23rd February for Internet services to B company in the US, no matter what you paid or in what way (T/T, personal credit card or corporate credit card), you have to file Phor. Phor. 36 within the 7th of March.
If you are a VAT registered company you can use the receipt as a purchase VAT to claim your VAT back in March (not February). But if you are not a VAT registered company, you cannot claim back the VAT you've paid for Phor. Phor. 36 but you rather use that amount as an expense in your profit and loss