Shopping in Thailand: How can a tourist reclaim VAT?
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For many goods you put in Thailand you can reclaim the VAT of 7% as a foreign tourist. In this article you can read how you can do that.
Thailand is a paradise for anyone who enjoys shopping. In Bangkok and other tourist cities there are luxury shopping malls that can compete with the most luxurious and largest in the world. Prices are often lower than in the west, so bargain hunters can rub their hands. For us frugal Dutch people it is nice to know that you can also get the Value Added Tax (VAT) back. And let's face it, who wants to pay taxes?
With most goods you buy in Thailand, 7% VAT is included in the price. The good news for tourists is that you can reclaim the VAT just before you leave Thailand. To be eligible for a VAT refund, the goods must be purchased from a shop participating in the VAT refund scheme for tourists. Most major department stores such as Central World and brand shops such as Apple participate in this. You can usually recognize the store by a blue sign at the entrance with the text: 'VAT refund for tourists'.
How can you reclaim VAT?
When purchasing your goods, let us know that you want to reclaim the VAT. The store staff will then create a tax refund form (known as a PP10) and a tax invoice. You are also required to show your passport and your tourist visa (the white card that will be stapled into your passport upon arrival at the airport). The PP10 will be filled in partly by the store and partly by you.
The VAT can only be claimed if you are departing from one of Thailand's international airports (e.g. Bangkok, Chiang Mai, Hat Yai, Ko Samui, Krabi, Phuket or U-Tapao).
At the airport, before you check in, go to a 'VAT refund' office and show your PP10 form and the tax invoice there. Please note that the Thai customs officer will ask to show the purchased goods. It is therefore better not to put them at the very bottom of your suitcase. You must also show your passport. The customs officer will then stamp the form. You can then check in for your flight and go through passport control. Behind passport control is a second 'Vat refund office' where the final refund will be made. Please note that luxury goods such as jewelry, gold jewelry, watches, iPads, etc. with a value of more than 10.000 Baht must be carried in your hand luggage. You may have to show it again at the refund at the VAT office. This office is located behind passport control and security check.
How do I receive the money back?
For tax refunds less than 30.000 Baht, payment can be made in Thai Baht. You can do this by means of a check or a deposit to your credit card account. For cash payments, 100 Baht administration costs will be deducted from the amount to be refunded. If it concerns a refund of more than 30.000 Baht, the payment can only be made by bank transfer or transfer to your credit card account. When returning via bank transfer, 100 Baht will be charged plus the bank transfer costs that the bank charges for this.
Important points for attention for the VAT refund:
- Goods must be purchased from a shop that participates in the scheme (recognizable by a sticker or sign with the text 'VAT refund for tourists).
- The minimum amount of your purchase must be 2.000 Baht.
- Goods must be exported to Thailand within 60 days of purchase.
- Thai citizens or foreigners permanently residing in Thailand are not eligible for a VAT refund.
- You must show the original tax invoice if you want to reclaim the VAT. Make a copy for your own records because the customs officers keep the original and do not make a photocopy for you.
Feeding the 7% back is easy. What is not mentioned in this article is that you may have to pay 21% VAT in the Netherlands.
Reclaiming a tax benefit is therefore by definition not attractive in a number of cases.
Does it concern consumer items such as laptops, telephones or tablets? Then it is even recommended to take this used with you.
The 7% is negligible.
If you are really unlucky that you get an inspection upon arrival and you have not reported it, 21% VAT + fine will result.
If you also have some other stuff with you that does not comply with the import duties, it will be all in all unpleasant.
Check the website of the tax authorities.
And of course on, indicate Schiphol again. In addition to the import duties, pay 21% VAT. Count out your profit.
It goes without saying that – especially Dutch – visitors to Thailand do not file a declaration upon arrival at Schiphol if they have purchased items in Thailand for which the 7% Thai VAT has been reclaimed.
The chance of being caught at Schiphol is not really great, so the Dutch import duties (where applicable) and 21% VAT are only paid by very neat Dutch people. Unless you are unlucky enough to be checked after walking innocently through the "green zone", then payment of duties and a fine will follow.
The probability of being caught is very high.
Not so bad from Thailand I think, but customs from other countries just work together.
For example, if you buy a watch in Switzerland and then request a refund of the tax, the customs authorities in the Netherlands will simply be informed. So if you get through it then it is indeed more luck than wisdom.
This has been the case for years, also in maritime shipping. If a ship bought a batch of bottled drinks for the bonded stores somewhere, the customs authorities in the next port also received a copy of the order list. If you had chased through 2 bottles of booze in 100 days, you had some explaining to do.
Bought 2 bags and some small stuff in the Louis Vutton store in Bangkok a few years ago, got VAT refunded in Thailand, so as a neat and good citizen at Schiphol, when I arrived at the red gate, a customs officer looked at me strangely and asked me, why are you standing there, well I think I have something to say.
I get the stuff and the invoice and after he looked at everything, you are way too honest so this time I let you go. How lucky because I would have had to make a nice contribution to the treasury if I hadn't done it like this and got caught with this stuff. So rather a good citizen in this case.
We rarely have control at Schiphol. Still check the last time no problem have nothing that is not allowed. We spent two hours negotiating my trim shoes, which, by the way, did not come from Asia, but almost new from America. I think what are they doing now bon I had at home but 99% of the time I walk on slippers. After two hours of shoebating they were out they were real. Had 2 packs of cigarettes too many, nothing was said about that. Total focus on my beautiful Ecco grooming shoes.
I also had to pay a fine with photo lenses, I was fed up with a protest and all the money was paid back properly. Sometimes you're out of luck.
What many don't know is that it also works the other way around. If you live in Thailand, and you buy a laptop in Europe, you can also reclaim the VAT. Obviously this is more than the 7% in Thailand. However, in Europe you can wait 3 months to implement it. For example, I prefer a laptop from Europe. So I buy it here and reclaim the VAT. Mediamarkt simply supplies the documents.
And how much more expensive are those shops that participate in the 'VAT refund for tourists' program? My experience: more than that 7$%, so a lot of extra work for 0 revenues. Apart from the customs risks at Schiphol, Zaventem or Düsseldorf anyway.
During the last trip to Thailand, I bought 6000 baht worth of groceries at Big C. There also turned out to be a tax return office - have the form filled out and show it neatly at the airport with the other receipts for the tax return. You can also reclaim VAT on groceries.
Well dear Frank,
You must have bought more from that bigC?
Because for € 11,= you are not going to get that whole hassle on your neck.
You have to have the VAT account specified at the bigC at the Office, and then you have to do some tricks on Suvarabhum to get that € 11 back.
And regarding messages: you should be able to show them!
Did you also carry out those groceries and take them to the Netherlands?
Indeed, also at Suvarnabhumi behind customs actually get your money back. But if you are unlucky that a few planes full of Chinese people are just about to leave, you can just have to stand in line for 30 ~ 40 minutes before it's your turn. So count on quite a bit of extra waiting time.
You can enter tax-free for an amount.
See info from customs
Did you buy goods outside the EU with a total value of € 430 or less? Then you can take it with you tax-free. You do not need to include the value of alcohol and cigarettes. The tax-free quantities of these products can also be found in this table.
You must not split the value.
The exemption does not apply to commercial goods.
Examples
You buy a camera for €500.
You must pay tax on the full amount.
You buy a watch for € 400 and a fountain pen for € 55. The total amount is € 455.
You only pay tax for the fountain pen.
Hans van Mourik says
That's right Nellie.
I myself bought a laptop from media market for 3 euros 700 years ago.
Had to show my passport there, and they filled out the documents.
Had then been to Schiphol a week later to reclaim my VAT.
Couldn't, had to on the day I fly back.
On the day I fly back I went there, left the laptop in the box first.
When they stamped, I had to take the form to the desk next door and got my VAT back about 21% in cash.
The same type of laptop is cheaper in the Netherlands than here.
Then I sat somewhere and took the laptop out of the box and put it in my laptop bag.
Reason because in Thailand what is official, it has to declare it at customs.
So I don't do that, with the chance that I have to pay VAT here.
Before people say I'm wrong they're right
Bought an iPad at Mediamarkt this year. Did the same procedure
Hans
Hans van Mourik says.
Don't have to wait 3 months, because they can see from my passport that I don't live in the Netherlands.
Otherwise I am obliged to stay in the Netherlands for 3 months.
Hans
Didn't say you have to wait 3 months either. It should not exceed 3 months.
Probably no one has also paid attention to what he or she actually gets back. The yellow 'VAT' shows exactly the amount of VAT that you will receive back. But that is always less than 7%, often a maximum of 5% of what you get back. Here too you will be screwed over by the Thai government.
Dear Brabant man,
It is true that VAT is charged on the net amount!
So you really get 7% back of the net amount (the amount without VAT)
That's why it seems to be less.
You apparently don't have to run. I bought a laptop as a gift for my Thai girlfriend in Bangkok. So the laptop stays in BKK and I couldn't show it in Suvarnabhumi either. Still I got the VAT refund. I told the official: “I bought the laptop as a present for my GF in BKK and I don't have it here”. Bizarre.