Conditions for Value Added Tax (VAT) refund for exported goods.

Exporting goods to foreign countries is another business that receives government support and generates significant import and export value every year. Under Thai Value Added Tax (VAT) law, exported goods are exempt from the 0% (Zero-rated VAT) rate to promote the competitiveness of businesses in the global market. However, even though exporters don't have to pay VAT on exported goods, they can claim a refund of VAT paid to domestic suppliers of raw materials, services, or goods. This article from SME Shipping will guide you through the process of claiming a VAT refund for goods, raw materials, or services related to exports, subject to the conditions set by the Revenue Department.

1. Those eligible to claim a VAT refund.

• We are a VAT-registered business operator.
• The goods were actually exported in accordance with legal procedures.
• There is complete and accurate supporting evidence and documentation. 

2. Key conditions for claiming a VAT refund.

2.1 This is an export product eligible for VAT exemption code 0%.

• Exporting goods from Thailand directly to foreign countries.
• It must be proven that the goods have actually left the Kingdom.

2.2. Complete export documentation is available.

• Export Declaration
• Full tax invoice
• Proof of shipment, such as a bill of lading (or air waybill).

2.3 Submit a tax refund request within the specified period.

• Within 3 years from the due date for filing the VAT return form (Form P.P.30) for the relevant month.

3. Documents required for VAT refund application.

• Form K.P.10 (Tax Refund Request Form)
• Purchase tax list
• Tax invoice
• Copy of the customs declaration form / shipping document.
• Other supporting documents as required by the Revenue Department. 

4. How to apply for a VAT refund.

• Submit it through the Regional Revenue Office where the business is registered.
• Alternatively, you can choose to submit the form online through the Revenue Department's e-Filing system.

Products eligible for Value Added Tax (VAT) refund.

Businesses can claim a VAT refund on exported goods only if the goods meet the criteria stipulated by law, which generally means they were genuinely exported outside the Kingdom and have complete export documentation.

✅ Types of products that meet the criteria

• Products exported from Thailand to other countries.
• Shipping by sea, air, or international postal parcel.
• An export declaration form that has been cleared by the Customs Department is required.
• Goods in the form of raw materials or parts used in manufacturing and export.
• Examples include electronic components, food raw materials, packaging, etc.
• It is necessary to demonstrate a genuine connection to the exported products.
• Products are sold to international customers and shipped directly overseas.
• This is not a sale to individuals within the country, even if the customer is located abroad. 

❌ Products that do not meet the criteria.

• Products that are sold and consumed domestically.
• Goods exported "without a customs declaration" or without evidence of movement out of the country.
• Goods that have been exported but have not undergone proper customs clearance.

Claiming a Value Added Tax (VAT) refund for exported goods is a tax benefit that businesses should not overlook. It can effectively reduce costs and improve business liquidity. However, strict adherence to the Revenue Department's procedures and conditions is crucial to avoid rejection or future problems. The refund process has clear criteria and conditions, particularly regarding supporting export documentation, application deadlines, and eligibility criteria for goods and services. Therefore, businesses should carefully study this information to ensure they don't miss out on these tax benefits.