reprinted from:

Many fail to obtain tax refunds;
Shops and Customs not co-operating
 

By Sukanya Jitpleecheep and Peerawat Jariyasombat
Copyright 1999 The Bangkok Post
Reprinted with permission
Article date: October 21, 1999
 

Due to poor guidelines on value-added tax refunds, some 30% of tourists have failed to use the service.

Since the VAT refund policy was implemented in June, about 20,000 tourists have claimed refunds but only 14,000 have successfully got their money back.

The problem is caused by lack of co-operation between retailers and the Customs Department.

The Customs Department said many retailers did not fill in the names and addresses of tourists on the application forms.

Others do not provide VAT refund application forms for tourists who purchase goods worth over 2,000 baht. Instead, they suggest that tourists apply for the forms at the airport, when in fact there are no forms available there.

Retailers have also issued incorrect documents to tourists to claim tax refunds at the airport. Examples include guarantee certificates not accompanied by VAT refund applications.

The VAT refund application form and tax invoice should be submitted together to officials at the airport.

Watcharee Chaiakasi, director of value-added tax refunds, said the Customs Department had issued retailers with new guidelines on the collection of VAT.

The total amount of all tourist purchases must be at least 5,000 baht to be eligible for a tax refund.

However, application forms can be collected on different days, whenever at least 2,000 baht is spent in the same store on the same day.

The application form must also be completed at the store on the day of purchase.

On departure at the airport, all goods must be inspected by Customs officers before check-in.

Jewellery, gold ornaments, glasses, watches and pens must also be inspected by Revenue Department officers at their counter in the departure lounge.

The complicated measures were designed to prevent abuse by retailers, said Dr. Chatrchai Tuongratanaphan, human development director of Big C Supercentre Plc, a major discount retailer. However, they have turned off tourists instead.

He said most retailers were willing to cooperate with the Customs Department on the VAT refunds, but the supporting documents on refunding the tax were difficult to understand.

Juthamas Siriwan, deputy governor for administration of Tourism Authority of Thailand (TAT), said she was aware of the problem with VAT collection, but the TAT had not officially discussed the matter with the Customs Department.

"The Customs Department is now the sole authority on VAT refunds. Therefore, there is no cooperation among all the other organisations," Mrs. Juthamas said.
 

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