As a VAT-registered entity in Thailand, an important factor to consider when invoicing your customers is the ‘tax point’. The tax point is the date when the VAT is due, and the date differs whether you sell goods or services. For the sale of goods, the VAT is due when the goods are delivered, regardless of when payment is made. However, if advance payment is made before delivery, then the VAT is due upon payment receipt. For the provision of services, the VAT is due when the customer pays, regardless of when the service is rendered.
Sale of goods
When delivering your goods, the VAT is due and you must therefore issue a ‘Tax Invoice’ to your customer. The actual wording may be ‘Invoice / Tax Invoice / Delivery Note’ or similar as long as it contains at least ‘Tax Invoice’. When your customer pays you for the goods, you should then issue a ‘Receipt’.
You run an office furniture company and deliver 10 desks for ฿20,000 + VAT to a customer on Dec 20. Upon delivery, you must issue an ‘Invoice / Tax Invoice / Delivery Note’ and declare the VAT of ฿1,400 within Jan 15 (+8 extra days when submitted online). When your customer pays you on March 20, you must then issue a ‘Receipt’.
Provision of services
Once you have rendered services, you must issue an ‘Invoice’ to your customer, not a ‘Tax Invoice’ since the VAT is not due yet. When the customer pays you, the VAT is now due and you must therefore issue a ‘Tax Invoice / Receipt’.
You run a market research company and provide a research on the Thai property market to a customer. On Dec 20, you send the completed report and issue an ‘Invoice’ for ฿20,000 + VAT. When your customer pays you on March 20, you must then issue a ‘Tax Invoice / Receipt’ and declare the VAT of ฿1,400 within April 15 (+8 extra days when submitted online).
The Tax Invoice must contain the following mentions:
- The wording ‘Tax Invoice’ in a prominent place
- Full name, Address and Tax identification number of the seller along with the wording ‘Head Office’ or ‘Branch no. xxxxx‘
- Full name, Address and Tax identification number (if any) of the purchaser of goods or services along with the wording ‘Head Office’ or ‘Branch no. xxxxx‘
- Serial number of Tax Invoice
- Date of issuance
- Description, quantity, value of goods or services
- VAT amount clearly separated from the amount of invoiced goods or services, example as follows:
Total Before VAT: ฿10,000
Grand Total: ฿10,700
Last, it is important to send the original signed and stamped Tax Invoice to your customers so they are able to claim the paid VAT.
For more info about VAT in Thailand, please visit our dedicated page here.