BDO Tax Newsletter: Sales of goods outside Thailand by VAT registrants
BDO Tax Newsletter: Sales of goods outside Thailand by VAT registrants
BDO Tax Newsletter: Sales of goods outside Thailand by VAT registrants
Overview
Effective from early 2025, the Thai Revenue Department issued Departmental Instruction (DI) No. Paw 164/2568, superseding the previous guidance under DI No. Paw 89/2542. This new instruction provides updated procedures and illustrative examples for allocating input tax for VAT registrants engaged in out of VAT scope transaction, such as the sale of goods outside Thailand.
Below is a summary of the revised input tax allocation methodology:
Scenario 1: Mixed Business Activities – VAT and Out of VAT scope Transactions
Applicable to:
VAT registrants conducting both VAT-liable business and out of VAT scope business mentioned under Section 77/2 of the Thai Revenue Code (e.g., out of VAT scope).
Requirement:
Input tax must first be apportioned based on the revenue derived from out of VAT scope activities. Only the remaining input tax is deductible against output tax, in accordance with Section 82/3 of the Thai Revenue Code.