The Revenue Department has softened its stance, allowing private entities to apply for the establishment of five new VAT refund points for tourists, up from the previous limit of three, in an effort to support tourism and stimulate the domestic economy.

On November 16, 2018, Mr. Aekniti Nitithanprapas, the Director-General of the Revenue Department, signed a declaration allowing interested operators to apply for permission to provide VAT refunds for tourists (VAT Refund for Tourists) from November 15, 2018, to March 31, 2019. Operators can apply for up to five refund points. Those who were previously authorized to operate up to three points can also apply for additional points, but the total must not exceed five.

This announcement to accept applications for the VAT Refund for Tourists program is still considered a pilot project. Regardless of when new operators submit their applications and receive approval, they will only have until March 31, 2019, to operate the program. After that, the Revenue Department will evaluate the project and propose to policymakers whether to continue it.

According to sources from the Revenue Department, they began accepting applications from operators interested in the VAT Refund for Tourists program in September 2018, with three applicants. However, only one met the qualifications: Counter Service Co., Ltd., which started operations on October 1, 2018. The other two applicants did not qualify, particularly VAT Refund Center (Thailand) Co., Ltd., which included four retail members: Siam Piwat Co., Central Group, The Mall Group, and Robinson Co., Ltd., as they violated the condition of proposing five refund points instead of the maximum of three set by the Revenue Department. They filed an appeal with the Revenue Department on October 22, but the appeal was not accepted.

Nonetheless, the Revenue Department's decision to accept new applications for the VAT Refund for Tourists program allows VAT Refund Center (Thailand) Co., Ltd. to reapply and potentially qualify immediately. The Revenue Department justified this new application round as a means to support tourism and stimulate the domestic economy.

Thank you for the information from www.thaipost.net