VAT refunds soar as more tourists come to Thailand
Value added tax (VAT) refunds for tourists jumped significantly following Thailand’s reopening in June last year, with the refunds for the first three months this year soaring to 700 million baht, the Revenue Department said on Monday.
About 273,000 tourists applied for VAT refunds from January to March this year, department director-general Lavaron Sangsnit noted. The more than 700 million baht is almost half of the total VAT refunds in 2022 of 1.2 billion baht, with most of that amount coming in the second half of the year after Thailand fully reopened its borders on June 1.
From January to May 2022, some 55,7000 tourists applied for VAT refunds valued at 204 million baht, with the amount rising to almost 1 billion baht from some 367,000 tourists for the seven months to December.
The amount of VAT refunds is one indicator of the recovery of the tourism industry, as it reflects foreigners’ spending in Thailand, said Lavaron.
He said the department has streamlined VAT refund process into three simple steps:
1. Tourists spending more than 2,000 baht (including tax) at shops bearing the logo “VAT refund for tourists” get the refund form (P.P.10) from the shop the same day. They must also show their passport so the shop can enter the passport number on the tax invoice.
2. Show the purchased products and corresponding documents at the customs office for approval. In case the product value exceeds 5,000 baht, tourists must present them along with documents at the customs office on their departure date.
3. Get a refund on VAT at the counters in 10 international airports countrywide for an amount of less than 30,000 baht in either cash (Thai baht), Alipay, WeChat, credit or debit card. Refunds of over 30,000 baht will be paid via credit card only in 34 days. Alternatively, tourists can mail the P.P.10 for a refund via credit card; get a refund via agencies with booths in leading department stores; or submit electronic P.P.10 from eligible shops to the Thailand VRT application, which will refund via Alipay, WeChat, and credit card.
