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Settlement |
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The company launches a website www.y.com to provide information, specially about education as well as to advertise other foreign websites. If customer visit the said foreign website, the Company will receive commission from owner of the said foreign websites accordingly.The payment is made in check which takes approximately 30-45 days to clear after pay-in
Upon clearing, the Bank will inform about payment remittance to the Company. The Company provides service to foreign companies which is whether entitled for 0% VAT or not. Does the Company have to issue tax invoice when receiving check or when the bank pays-in the check?
Chiang Mai Revenue Office considers that the Company is not permitted to apply for 0% VAT since service is not totally provided abroad as per Section 80/1(2) of the Revenue Code and Article 2 of the notification from the Director-General of Revenue Department (105th edition) dated 12 July 2000 and the Company have to issue tax invoice according to the date specified in the check pursuant to order of the Revenue Department No. Por. 51/2537 dated 24 October 1994. However, the Revenue Office Region 8 is of the opinion that the company is permitted to apply for 0% VAT pursuant to Section 80/1(2) of the Revenue Code and pursuant to notification of the Director-General of Revenue Department regarding value added tax (105th edition) dated 12 July 2000 |
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Conclusion |
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1. The advertisement of foreign website on the Company's website is classified as service providing within the Kingdom pursuant to Section 77/1 (10) and Section 77/2, paragraph two of the Revenue Code. Furthermore, the said service is classified as service provided within the Kingdom but rendered oversea pursuant to Section 80/1(2) of the Revenue Code, and article 2 of the notification from Director General of the Revenue Department regarding value added tax (105th edition) Subject: Classification of type, criteria, method and condition of service provision within the Kingdom and service rendering oversea pursuant to Section 80/1(2) of the Revenue Code dated 12 July 2000
The service is provided within the Kingdom, the customer is based abroad, it does not deemed that whole service rendering are from abroad since there may be Thai customers visit the advertised foreign website. Hence, the Company is liable for 7.0% VAT pursuant to Section 80 of the Revenue Code.
2. The Company is liable to provide tax invoice upon receipt of payment which is on the date specified in the check pursuant to Section 78/1(1) of the Revenue Code , and article 1 of the Order of Revenue Department No. Por. 51/2537 Subject: Issuance of tax invoice and receipt in case registered entity that sell or provide service receive payment by check, dated 24 October 1994 |
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