- New Thai Revenue Department guidance (DI No. Paw 164/2568) changes input VAT treatment for VAT-registered taxpayers selling goods outside Thailand, effective 5 February 2025.
- Taxpayers must now allocate input VAT using a two-step process: exclude input tax proportionate to out-of-scope revenue, then allocate remaining input tax between VATable and non-VAT businesses.
- Input tax allocation must be done monthly (not annually) for mixed business activities.
- For businesses with VATable, non-VAT, and out-of-scope activities, input tax is first allocated to out-of-scope activities, then the remainder is apportioned between VAT and non-VAT businesses as per the Revenue Code.
- The new rules supersede previous guidance and provide updated procedures and examples for compliance.
Source: bdo.global
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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