Newest Judgement and Ruling : (Taxation issue) Taxation issues: Registered entrepreneurs who sell products that are not imported by themselves and deliver them to buyers by transferring the right to import the products to the buyers as importers will cause buyers to pay VAT twice:
Registered entrepreneurs who sell products that are not imported by themselves and deliver them to buyers by transferring the right to import the products to the buyers as importers will cause buyers to pay VAT twice:
(Revenue Department Ruling Kor Kor 0702/1167 dated 7 March 2014)
The first time: they pay VAT when they import the products once.
The second time: they pay by being collected by the registered seller again.
This causes the tax burden to fall on the buyers of the products twice. Therefore, the Revenue Department has issued the Director-General of the Revenue Department Announcement on VAT No. 40 dated August 26, 1993, Section 2(9), together with the Revenue Department Order No. Por. 101/2543 dated May 29, 2000, to make the VAT burden only once. The conditions for receiving the rights under this law are that the buyers of the products must be importers, and the buyers of the products must provide a copy of the Customs Department receipt showing that the VAT has been paid for the import of the products that the buyers of the products purchased from the sellers, and the sellers have transferred the products to the buyers as importers. And there are only 3 parties involved in the transaction:
- Registered entrepreneurs who are domestic sellers of goods
- Buyers of goods who buy goods from registered entrepreneurs who sell goods in the country and
- Foreign sellers who sell goods to domestic sellers according to item 1.
However, if there are more than 3 parties involved in the goods sale’s transaction, such as a 4th party who is a buyer of goods from the buyer according to item 2. and the 4th party buyer imports the goods, in this case, the domestic sales of goods in every period do not meet the conditions for receiving the right to not include the value of the goods sold in the calculation of the tax base value. The sellers of goods in every period must therefore pay VAT and issue a tax invoice to collect VAT from the buyers of the goods, even though the final buyer of the goods is the importer of the goods and pays VAT on the import and delivers the Customs Department receipt to the seller (referring to the discussion of Kor Kor 0702/1167 dated 7 March 2014)
Revenue Tax: VAT In the case of transferring import rights to the buyer, must a tax invoice be issued?
Revenue Department Book No. Kor Kor 0702/6673
Points of discussion :
M Company Limited discussed the delivery of electronic tax invoices because the company is the issuer of electronic tax invoices for customers to inspect. View and download electronic documents via the Company’s website. Please consider whether it complies with the meaning of delivery as announced by the Director-General of the Revenue Department (No. 15). The matter of determining the criteria, methods and conditions for preparing, delivering and keeping electronic tax invoices and electronic receipts, dated 18 October 2019 or not and the Company. Can this guideline be followed?
Diagnosis :
1. Ministerial Regulation No. 384 (2022) under the Revenue Code on the process of handling documents, evidence or documents via electronic means. Dated 8 July 2022, effective 19 August 2022, resulting in the Director-General of the Revenue Department Announcement (No. 15) dated 18 October 2019 ceasing to be effective.
Ministerial Regulation No. 384 (2022) Section 15 stipulates that registered operators or persons responsible for issuing receipts are still required to submit electronic tax invoices. or an electronic receipt provided to the purchaser of goods or service recipient by electronic means and the results of sending and receiving comply with the Electronic Transactions Act.
2. In the event that the Company allows customers to view documents and download electronic documents in PDF format via the Company’s website using the Customer’s User ID. For those who use the services through the Company’s website, the Company is able to proceed in accordance with Section 5 of the Act, in conjunction with Section 15 of the Ministerial Regulation No. 384. (2022) The Company must enter into a written contract with the customer specifying a system for sending or receiving electronic tax invoices or electronic receipts by the aforementioned method.