Travel Thailand 101: Top Tips on How to Get a VAT Refund in Thailand

Apart from the world-class food, magnificent temples, and pristine nature, Thailand (particularly Bangkok) is famed for being a top-drawer shopping destination with a myriad of shopping malls and boutiques offering stunning bargains. From cheap finds to brand-name trinkets, Thailand has it all!  Apart from sometimes unbelievably good prices – or at least very competitive – you can also enjoy the benefits of discount cards at many shopping centres and department stores. 

Here in Thailand, we have a unique tax system called “VAT,” which stands for “Value Added Tax”. Like the name suggests, this is a tax added on any value during each stage of production and distribution of a good or service. As a result, there’s a chance that you can pay more for VAT than the actual amount charged. In this case, you can qualify for a VAT refund. 

“So, why does Thailand have to impose a tax refund system such as the VAT?” you may ask. As Thailand is one of the most popular travel destinations in the world, there is a lot of traffic of foreigners coming in and out of the country. As a result, they’ve figured out a way to encourage more tourists to spend money in the country. The more money visitors spend in Thailand, the better the country can develop to support its tourism industry.

Without further ado, let’s take a look at these simple steps, on how to get a VAT refund in Thailand.

1.) Look for Qualified Stores for VAT Refunds for Tourists

As mentioned before, the VAT refund system for tourists is a way to encourage tourists to shop in the country. According to the Tourism Authority of Thailand, The country offers a 7% refund for goods and services that are purchased in Thailand. This excludes the hotels and restaurants you’ve visited during your time in the country, however. Sounds like a splendid idea to plan a shopping spree in Thailand, doesn't it? Goods purchased in Thailand are VAT inclusive. But foreign visitors (with a few exceptions) have the benefit of receiving a 7% VAT refund on luxury goods purchased from shops that participate in the 'VAT Refund for Tourists' scheme.

First things first, just look for stores displaying the "VAT REFUND FOR TOURISTS" sign at their shopfront on their eligibility to provide VAT refund for tourists. Of course, there are exceptions for some that are illegal, such as firearms, or other items like gemstones and more. 

2.) Spend at least 2,000 Baht in One Day

Just as there are requirements for the list of items eligible for a VAT refund in Thailand, there are requirements for the cost of the goods and services, too. To get a VAT refund in Thailand, you must spend a minimum of 2,000 Baht on the same day. Also, the total amount of the cost of goods or services must total to more than 5,000 Baht as well, according to Thailand’s Department of Revenue.

3.) Complete the Tax Refund Form & Tax Invoice

Another way to get a tax return in Thailand is to request a tax refund form called the “P.P.10” from the sales assistant at the shop that you’re purchasing from. The sales assistant or cashier will complete the form for you with the necessary information including the value of the purchase. According to the Tourism Authority of Thailand, You’ll need to also present your passport to them, and attach the original tax invoice to the form. Each application form must show the value of goods of at least 2,000 Baht or more.

4.) Claim for a VAT Refund at the Airport

Since the goods or services that you’ve purchased will be travelling with you outside of Thailand, you’ll essentially be claiming a VAT refund for tourists whilst you leave via any international airport in Thailand. Also, keep in mind that the goods you’ve purchased must be taken out of Thailand with you within 60 days from the date of purchase. Before departure, present your goods and VAT Refund Application for Tourists form to Customs officers for inspection before check-in. According to Thailand’s Department of Revenue, Luxury goods such as jewellery, watches, glasses, or pens must be inspected once more by the Revenue officers at the VAT Refund Office at the departure lounge. Other than that, you can drop the documents into the box in front of the VAT Refund for Tourists office, or mail the documents to the Revenue Department of Thailand. 

According to the Tourism Authority of Thailand, For purchases under 30,000 Baht, refunds will be made in cash or credited to your credit card account. For purchases over 30,000 Baht, the refund will be made by bank draft or credited to your credit card account. There’s also an additional 100 Baht fee for cash refunds, and a few hundred Baht plus a draft issuing fee at the rate charged by banks plus postage fees for a bank draft refund. For credit to credit card account refund, a few hundred Baht plus a money transfer fee at a rate charged by banks and postal fees will be further added.

So, Who can claim a VAT Refund in Thailand?

1. Those who are not Thai nationals  
2. Those who do not have a residency in Thailand. 
3. Those who are not airline crew members departing Thailand on duty 
4. Depart Thailand from an international airport. 
5. Purchase goods from stores displaying a "Vat Refund For Tourists" sign. 
6. Present the goods and VAT Refund Application for Tourist Form (P.P.10) and original tax invoices to the Customs officer before check-in at the airline counter on the departure date.

Vat Refunds in Thailand Will Not be Made If: 

1. You carry a diplomatic passport and reside in Thailand.
2. You are an airline crew member departing Thailand on duty
3. Your stay in Thailand exceeds 180 days in a calendar year
4. Goods were not taken out of Thailand within 60 days after the date of purchase
5. You didn't depart Thailand from an international airport
6. The name or passport number does not match those on the original tax invoice attached to the VAT Refund Application form
7. The value of goods purchased is less than 2,000 Baht per day per store
8. Your purchased items fall under the following category: gemstones, firearms or explosives, prohibited items
9. VAT Refund Application for Tourist form was not prepared on the date of purchase
10. The total value of goods claimed for refund is less than 5,000 Baht
11. Original tax invoices were not attached to the VAT Refund for Tourist form
12. You did not carry the goods out of Thailand on the day of your departure
13. Goods were not purchased from shops participating in the VAT Refund for Tourists Scheme
14. The quantity of goods shown in the VAT Refund Application for Tourist form is less than that shown in the original tax invoice
15. Goods were taken out of Thailand without being inspected by Customs or Revenue officers
16. Luxury goods were taken out of Thailand without being checked by the Revenue officers
17. Tax invoices attached to the VAT Refund Application for Tourists were issued from a different store than mentioned on the form.

To conclude, getting a Vat Refund for Tourists in Thailand can be trouble-free for you if you follow these simple steps and other essential conditions in mind. Even though there are a few conditions that you have to remember, we advise all travellers to have this information with you if you want to go on a splurge while you’re in the kingdom. 

Other than being a culinary, and historical paradise, Thailand is a place for shoppers. From quaint flea markets to upscale malls, Thailand is a place for every type of shopper and traveller alike. For a smooth holiday in Thailand, we recommend you to get the TAGTHAi App on your mobile phone for all the essential information. For an even smoother holiday here in Thailand, the TAGTHAi Pass provides a comprehensive introduction to your stay in the “Land of Smiles”.