Export Biz And Vat

[Superskunk]

Just about to start up an export company and still have some questions.

I know that I need to register for VAT but do I have to bill it to my customers in foreign countries?

If I would have an export business in Germany the customers from foreign countries would not have to pay the VAT. But this would mean, I only have a VAT output and no input?

Anybody firm with the export business can answer my questions?

[raro]

if you export the goods, no VAT to be charged. VAT applies only to transactions within Thailand and for imported goods.

[Superskunk]

Thank you! This is exactly what I expected.

But this does mean I will only have a VAT output and I will get a refund every month, correct?

[raro]

Thank you! This is exactly what I expected.

But this does mean I will only have a VAT output and I will get a refund every month, correct?

Correct!

You have to claim the VAT spent back from the revenue department. Make sure that your books are all squeaky clean as the next thing that will happen is a little check on your accounting. Then - if everything is above board - you will get the VAT back in two or three months.

[Sam125]

Thank you! This is exactly what I expected.

But this does mean I will only have a VAT output and I will get a refund every month, correct?

Correct!

You have to claim the VAT spent back from the revenue department. Make sure that your books are all squeaky clean as the next thing that will happen is a little check on your accounting. Then - if everything is above board - you will get the VAT back in two or three months.

If you buy in bulk and pay VAT but export retail through the post office can you still get a VAT refund?

Is there a 1 year time limit?

[Superskunk]

I would guess so, because you are billing to a address in a foreign country.

[raro]

I don't think so as you have no export documentation from the customs proving that you have exported the goods. This must be attached to your invoice as prove of export. Not sure if you can make such declaration at the post office or the local DHL booth for that matter.

[Superskunk]

What I have is the bill with the customers address in a foreign country.

And if I send the goods with the registered air mail there also will be the name of the customer on it.

Because I want to send most of the goods to Germany I contaced the customs office there. They told me I should attach a customs form on every pack. On this form there is an exact list of the content, the TIRAC No... sorry.. TARIC No *lol* and the value. Of sure I will keep a copy of this form in my papers.

I think that should be enough to proof that I really sent the goods in a foreign country.

[Sam125]

I don't think so as you have no export documentation from the customs proving that you have exported the goods. This must be attached to your invoice as prove of export. Not sure if you can make such declaration at the post office or the local DHL booth for that matter.

Raro,

You understand my concerns very well.

I have applied for a US duty drawback once and I received the refund but I had to submit many forms with a whole pile of paperwork and wait over 6 months. Part of the paperwork included an original customs inspection as you note there will be not be an inspection at the post office.

Superskunk,

I will check with my local post office but most likely all the forms are not verified. So for example I can state anything that I want on the customs or registered mail form but no one is verifying it. Note we currently do exactly what you are planning to do and have a pile of registered mail receipts and forms. The receipts fade after some time due to cheap ink at the post office so are of limited value.

We are left with customs and registered mail forms which are not typically verified and unless you have an unopened package how can they inspect the boxes? All our boxes are taped before going to the post office.

Please let me know what you find out if you contact customs or try to do it. Thank you!

[Superskunk]

The customs form is NOT verified. I have to fill out it by myself and stick it on the package.

But why I have a lot of bills from the post office with the name and country where I sent the goods?

Really, the revenue department should have to accept this... but we are in Thailand, right?

Another question:

What kind of legal structure I can use for my business?

I went to a famous consultant agency already and they offered me to open a LTD Co.

98% of the shares for me

1% Thai shareholder No. 1

1% Thai shareholder No. 2

Is this the best way I can go? Also if I want to apply for a work permit later?