How are tax invoices and value added tax (VAT 7%) related?

Tax invoice documents It is one of the documents at the heart of every business person (especially those in the VAT system) that every entrepreneur should familiarize with and pay attention to. When can the tax invoice be issued?

“Not everyone can issue a tax invoice.”

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What is a Tax Invoice?

This is an important document that must be issued by the VAT registrant (VAT-registered seller) to the buyer of the goods or services at all times. To show the value of goods or services charged to customers and taxes collected in addition to the price of goods or services charged to customers (VAT), the buyer’s side will use this document as a purchase tax. As for the seller himself, it’s proof of sales tax.Vat is based on the sale price. In the case of us selling or providing services, it is called “Sales tax or Output VAT”, but if you go to buy goods or services that the seller charges VAT and we receive a tax invoice. The part of the tax paid on the price of goods or services is called “purchase tax or input VAT”.In the case of a juristic person, VAT is 1/5 of the tax payable to the revenue only, the remaining 4 are paid. Study it here.yes

So what is the benefit of VAT on the people?

The result of paying the people’s taxes is not only the giving of the nation a budget for the administration of the land, but the benefits that the people will receive in the form of various benefits associated with living from birth to death. This is a good result for the people to pay taxes, because in the end, the tax money paid is to improve the quality of life of the citizens in various fields, which will be allocated according to the government as appropriate. (Based on the Annual Expenditure Budget Act)

1. Education Statements
2. Elderly Welfare Statement
3. Security statements
4. Transportation statements
5. Other public health statements (including gold card policy)
6. Hospital Statements
7. Police statements
8. Statements in other works

Who is responsible for preparing the tax invoice?

Businesses with revenues exceeding 1.8 million baht per year It is responsible for submitting an application for VAT registration with the Revenue Department within 30 days from the date of earnings exceeding 1.8 million baht. However, in case of income not exceeding 1.8 million baht or being in a vat-exempt business, it may be possible to choose whether to write it down or not. There are different advantages and considerations.

When is a tax invoice issued?

• In case of sale of goods, the seller is obliged to issue.Tax invoice to the buyer immediately upon delivery of the goods to the buyer (even if the buyer has not yet paid for the goods).
• In the case of providing services, the service provider is obliged to issue a tax invoice when receiving payment for the service, it can be seen that this point is different from the sale of goods.

Those who are prohibited from issuing tax invoices

1. Non-VAT registered personsOf course, since tax invoices are VAT registered or VAT-registered, then non-VAT-registered entrepreneurs cannot issue tax invoices, and including tax invoices received from non-VAT-registered people is not considered a legally valid tax invoice as well. So if you’re going to get a tax invoice from a seller who doesn’t have VAT, be careful not to use it, otherwise we’ll be fined.
2. Those who are VAT registered but do not actually sell goods or provide services.An entrepreneur who writes down real VAT but doesn’t sell real goods or services can’t issue a tax invoice, and the tax invoices they receive can’t be used as purchase taxes either, or what they call “fake tax invoices.”

Issuing fake tax invoices is harmful to both the issuer and the person who applies the purchase tax, because it is guilty of both the issuer and the person who uses the purchase tax, and is punishable by imprisonment, not just a fine.

What are the types of tax invoices?

There are 2 main types:

• Tax invoice summary 
• Full tax invoice

And another thing that people wonder a lot about is, “Are receipts and cash bills different?” I can find more answers.here

Vat-registered operators are obliged to issue a full tax invoice to the buyer of the goods or service recipients.

What details does a full tax invoice need?

1. The word “tax invoice” is clearly visible.
2. Have a tax ID, including the seller’s name and address.
3. Buyer’s name and address
4. Tax Invoice No.
5. Name, type, type, quantity, and amount
6. Separately display the amount of VAT separately.
7. Date of issue
8. Other statements made by the Director-General Applicable to operators
   1. Specify the seller’s “headquarters” or “branch…..”
   2. The taxPAYER ID of the buyer (especially the buyer who is in the VAT system).
   3. Specify the buyer’s “head office” or “branch that…”

Selling goods or providing retail services can issue a brief tax invoice.

If the customer does not request it, they do not have to issue a tax invoice (issue a tax invoice).

• The seller of goods or services has never had a tax base (income) in any month up to 300,000 baht.
• Sellers of goods or services whose establishments are trolley stalls.
• Providing performances, plays, sports where tickets are sold to visitors or participants.
• Public Telephone Operations
• Operation of expressways or concession highways
• Airport Operations
• Public Transport Operations
• Fuel sales of gas facilities

How to sell to customers who are not in the VAT system?

For customers who do not want to provide id card number information in trading. The owner also has the same duty to issue a full tax invoice (or issue a brief tax invoice if it is a retail customer), but for the buyer’s information, simply specifying the name and address is enough. Every now and then, the name and address information must be provided. If it is incomplete, it is also punishable by a fine. Therefore, it may be necessary to have a small form for customers to fill out for us so that they can issue the documents correctly and completely if they read here and still feel suspicious of the collection or issuance of tax invoices. You can consult us on how to properly issue and store it and can be used in the accounting and tax filing process. Line ID : plusitiveaccounting

Article by Flowaccount and Peakaccount

Compiled by Plusitive Accounting Team