Penalties regarding violation of Value Added Tax regulations

     The Value Added Tax (VAT) is a type of tax collected by the government from consumers who purchase goods or services. This indirect tax is typically collected by business operators from consumers at a current rate of 7%.

Simultaneously, tax evasion or fraudulent tax reporting is considered an offense, with penalties for VAT violations varying depending on the specific case, as follows:

• Business operators who are required to register for VAT but carry out their business without such registration are subject to imprisonment for up to 1 month, a fine of 5,000 baht, or both.
• Registered business operators who fail to report changes can face varying penalties, divided into:
  • Failure to report changes in VAT registration details can result in a fine of up to 2,000 baht.
  • Failure to report the opening of additional business premises can result in a fine of up to 5,000 baht.
  • Failure to report the closure of some business premises can result in a fine of up to 5,000 baht.
  • Failure to report the relocation of business premises can result in a fine of up to 2,000 baht.
  • Failure to report the partial transfer of business operations can result in a fine of up to 5,000 baht.
  • Failure to report the cessation or total transfer of business operations can result in a fine of up to 5,000 baht.
  • Temporarily ceasing business operations for more than 30 days without reporting can result in a fine of up to 2,000 baht.
• Registered business operators who fail to return their VAT registration certificate can face a fine of up to 2,000 baht.
• Registered business operators who intentionally evade or attempt to evade VAT by issuing tax invoices, debit notes, or credit notes without entitlement can face imprisonment between 3 months to 7 years and a fine between 2,000 baht and 200,000 baht.
• Business operators who intentionally use fraudulent or illegally issued tax invoices for VAT credit can face imprisonment between 3 months to 7 years and a fine between 2,000 baht and 200,000 baht.
• Registered business operators who fail to prepare reports can face imprisonment of up to 6 months, a fine of up to 10,000 baht, or both.
• Registered business operators who fail to submit VAT return forms can face a fine of up to 2,000 baht.
• Intentional failure to collect and store tax invoices or copies thereof can result in a fine of up to 2,000 baht.
• Failure to comply with the summons or orders of the tax assessor can result in imprisonment of up to 1 month, a fine of up to 5,000 baht, or both.

Source: The Revenue Department, 90 Phaholyothin 7, Phayathai, Phayathai, Bangkok 10400

Tel. +66 2272 8000

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