In a bid to enhance the experience for international tourists and simplify the Value Added Tax (VAT) refund process, the Thai government has introduced new regulations effective from January 01, 2024. These rules aim to ease the burdensome procedures tourists often face when seeking VAT refunds on goods purchased during their stay. The adjustments align with the current global situation, providing a more seamless and convenient VAT refund process for visitors.
Increased Purchase Threshold for Customs Declaration
The previous threshold of 5,000 baht for goods requiring customs declaration has been raised to 20,000 baht. Tourists purchasing goods below 20,000 baht can now request a VAT refund directly from the Revenue Department without undergoing customs procedures.
Expanded Categories and Values for Goods to be Declared
The range of goods requiring declaration has been expanded to include items such as jewellery, gold ornaments, watches, eyeglasses, pens, smartphones, laptops or tablets, bags (excluding travel bags), and belt buckles.
Value thresholds have been adjusted to 40,000 baht for certain items and 100,000 baht for items that can be carried on board.
To be eligible for a VAT refund, tourists must adhere to the following conditions:
- Purchased goods must be taken outside Thailand within 60 days from the date of purchase.
- Goods must be purchased from shops displaying the “VAT Refund for Tourists” sign.
- The total purchase amount must be at least 2,000 baht (including VAT) from the same business establishment on the same day.
- On the day of purchase, customers must present their passports to the sales staff and request the Por Por 10 form from the store, along with the original tax invoice.
- On the day of departure from Thailand, before check-in, the goods and the Por Por 10 form must be presented to customs officers for inspection and stamping.
VAT Refund Procedure
- Customs will inspect the goods and stamp the Por Por 10 form, submitting the tax refund documents (Por Por 10 form and original tax invoice). The customs officer will inspect the goods, stamp the form, and sign it on the day of departure.
- Reserve a seat and check-in luggage.
- Pass through the immigration process.
- Submit the tax refund documents and specified goods (if any) to customs officers to claim the tax refund.
Options for Receiving Refunds
Refund Amount Up to 30,000 Baht: Tourists can choose to receive the refund in cash (baht currency), as a draft, or transferred to a credit card account.
Refund Amount Exceeding 30,000 Baht: Refunds exceeding 30,000 baht can only be received as a draft or transferred to a credit card account.
Tax Refund Offices
Tax refund offices are available at 10 international airports, including Suvarnabhumi, Don Mueang, Chiang Mai, Chiang Rai, Phuket, Hat Yai, U-Tapao, Krabi, Samui, and Surat Thani.
With these adjustments, Thailand aims to simplify the VAT refund process, making it more accessible and traveller-friendly, ultimately contributing to the country’s appeal as a premier shopping and tourist destination.
