New value-added tax refund limit and criteria for tourists announced
The Thai government has announced new regulations for VAT refunds for tourists. The new rules, which took effect on January 1, expand the eligibility criteria for refunds and increase the maximum refund amount.
The rules apply to the methods and conditions for requesting value-added tax (VAT) refunds and the VAT refund procedure for tourists shopping and taking goods outside the country.
Normally, when tourists shop and purchase goods to take outside the country along with requesting a Value Added Tax (VAT) refund, they find themselves waiting in long queues and undergoing document inspections.
The Revenue Department has adjusted the criteria to align with the current situation, providing a more suitable and appropriate VAT refund process for tourists. The adjustments were made effective as of November and the details are as follows:
Increased purchase threshold for customs declaration: The previous threshold of 5,000 baht for goods to be declared to customs has been raised to 20,000 baht. This means that tourists who purchase goods below 20,000 baht can request a VAT refund directly from the Revenue Department without going through customs procedures.
Expanded categories and values for goods to be declared: The number of categories of goods requiring declaration to the Revenue Department has been increased to include items such as jewellery, gold ornaments, watches, eyeglasses, pens, smartphones, laptops or tablets, bags (excluding travel bags), and belt buckles. The value thresholds have been adjusted to 40,000 baht for certain items and 100,000 baht for items that can be carried on board.
In addition to these adjustments, the conditions for tourists to request a VAT refund include:
1. Taking the purchased goods outside Thailand within 60 days from the date of purchase.
2. Purchasing goods from shops displaying the "VAT Refund for Tourists” sign.
3. The total purchase amount must be at least 2,000 baht (including VAT) from the same business establishment on the same day.
4. On the day of purchase, customers must present their passports to the sales staff and request the Por Por 10 form from the store, along with the original tax invoice. Each Por Por 10 form must have a minimum product value of 2,000 baht.
5. On the day of departure from Thailand, before check-in, the goods and the Por Por 10 form, which should have a combined purchase value not exceeding 20,000 baht, must be presented to the customs officers for inspection and stamping.
6. For expensive items, such as jewellery, gold ornaments, watches, eyeglasses, pens, portable phones, laptops or tablets, handheld bags (excluding travel bags), belt buckles, each item must have a value of 40,000 baht or more. Items with a purchase value of 100,000 baht or more must be presented to the Customs Department for additional certification on the Por Por 10 form at the tax refund office located in the passenger departure area after passing the immigration process.
Tax refund procedures for tourists:
1. Customs will inspect the goods and stamp the Por Por 10 form, submitting the tax refund documents (Por Por 10 form and original tax invoice). The customs officer will inspect the goods, stamp the form, and sign it on the day of departure.
2. Reserve a seat and check-in luggage.
3. Pass through the immigration process.
4. Submit the tax refund documents and the goods specified by the Revenue Department (if any) to the customs officer to claim the tax refund.
After tourists receive certification and stamps from customs, following the immigration process and prior to boarding, they can request a VAT refund at the tax refund office, submitting the Por Por 10 form and the original tax invoice that has been certified by the customs officer. Tax refund offices can be found at 10 international airports, namely Suvarnabhumi, Don Mueang, Chiang Mai, Chiang Rai, Phuket, Hat Yai, U-Tapao, Krabi, Samui, and Surat Thani.
If the requested tax refund amount does not exceed 30,000 baht, tourists can choose to receive it in cash (baht currency), as a draft, or transferred to a credit card account. However, if the refund amount exceeds 30,000 baht, it cannot be received in cash, but only as a draft or a transfer to a credit card account.
