PwC Tax Insight PwC Tax Insight # 06/2013 TAX & LEGAL UPDATE

PwC Tax Insight # 06/2013
TAX & LEGAL UPDATE
TAX & LEGAL Services
Heading :
*Issued Date: 12 July 2013
Additional information required on tax invoices, debit notes, credit
notes, output and input VAT reports
The following report
may be of interest to :
All companies
Summary :
Background
VAT documents, such as tax invoices, debit notes, credit notes and various reports
are required to be prepared by VAT registered operators.
All VAT documents required by the VAT regulations must contain at least the
particulars/information specified. In the case of a tax invoice lacking such
particulars/information, there would be a risk that the issuer (seller) has issued an
incomplete tax invoice. If this were the case, a fine of not exceeding Baht 2,000
would be imposed.
imposed. Moreover, the receiver (purchaser) cannot use the VAT on an
incomplete tax invoice in its VAT computation.
Additional particulars/information required
On 28 May 2013, Notifications of the Director General on VAT Nos. 194
194- 197 were
issued so as to prescribe certain additional particulars/information required on full
format tax invoices, debit notes and credit notes, as follows:
Particulars/Information concerning purchaser:
 Tax identification number*
 Inclusion of the words “Head office”** in the case where the address of the head
office is specified
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 Inclusion of the words “Branch No…”** in the case where the address of a
branch is specified
Particulars/ Information concerning seller:
 Inclusion of the
the words “Head office”*** in the case where the seller has sold
goods or provided services from its head office
 Inclusion of the words “Branch No…”*** in the case where the seller has sold
goods or provided services from a branch
Furthermore, additional particulars/information
particulars/information are also required on the output
and input VAT reports as follows:
Output VAT reports of seller:
 Tax identification number * of purchaser
 Inclusion of the words “Head office”** or “Branch No…”** of purchaser, as
mentioned in the related
related tax invoices, debit notes or credit notes issued to the
purchaser
Input VAT reports of purchaser:
 Tax identification number of seller
 Inclusion of the words “Head office”*** or “Branch No…”*** of seller, as
mentioned in the tax invoices, debit notes or
or credit notes received from the seller
Notes:
*Applicable only to a purchaser who is liable to income tax or who is a payer of income with
duty to withhold tax, which is required to have tax identification number.
**According to VAT registration certificate
certificate if a purchaser is a VAT registered operator
***According to VAT registration certificate of seller
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PwC Tax Insight # 06/2013
TAX & LEGAL UPDATE
TAX & LEGAL Services
*Issued Date: 12 July 2013
Effective date
 For tax invoices - to be issued from 1 January 2014 onwards
 For debit notes and credit notes - those that refer to tax invoices issued from
1 January 2014 onwards
 For output and input VAT reports – according to the above tax invoices, debit
notes and credit notes
Methods
The above additional particulars/information
particulars/information can be made by printing
printing-press,
computer, rubber stamp, writing in ink, typewriter or any other means of a similar
nature.
PwC observation
1. Due to the use of the 13 digit tax ID numbers, it is possible that a seller may make
a small error when writing
writing the tax ID number of the purchaser on the tax invoice,
e.g. a one digit error or interchanging a digit, etc. It is questionable whether it
would be considered as a minor error which would not result in the input tax
being disallowed as tax credit according
according to Section 82/5(2) of the Revenue Code.
2. In practice, a company with long service contracts with a substantial number of
customers, e.g. hire-purchase
hire purchase business, telephone business, etc, whereby tax
invoices are generated by the IT system, may find it a tough job to add the extra
fields in the tax invoice template for the additional information required by law.
Furthermore, to have to request the additional information from existing
customers in order to update the system will not be an easy job
job. Six months may
be insufficient to have the system updated. Comprehensive testing may be also
required before the deadline. If the Company fails to issue a tax invoice, it may be
subject to penalty and surcharge under Section 89(5) of the Revenue Code as well
as criminal punishment under Section 90(12).
3. In the case where a VAT registered operator has several places of business, and a
branch issues a tax invoice of the head office to a customer every time that a sale
or service is undertaken by the branch,
branch, the wording “The branch issuing tax
invoice is……” is required to be included in the tax invoice.
The above rule is according to clause 3 of the Notification on VAT No 39 and
remains in effect. The new rule requires the additional wording “Branch No.
No.…” on
the tax invoice.
4. If a purchaser is neither liable to tax nor is a payer of income with the duty to
withhold tax, the purchaser is not required to have a Tax ID number. Therefore,
the seller does not need to specify the Tax ID number of the purch
purchaser on the tax
invoice.
Where the purchaser is not a VAT registered operator, it is not necessary to
include the words “Head office” or “Branch No…” of the purchaser in the VAT
documents.
Under the above cases, the seller should not be at risk of issui
issuing an incomplete tax
invoice.
5. Where the seller has only one place of business, the words “Head office” or
“Branch No…” of the seller would not be required to be included in the VAT
documents.
For further information, please contact:
Your regular PwC contact person.
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