Know Your Supplier: Protecting Input VAT In Thailand’s Digital Economy

Every month, VAT-registered businesses calculate output and input VAT and file a VAT return (Form Phor.Phor.30) to pay the net VAT due or to claim a refund. A recurring and costly dispute arises where a business has paid input VAT to its supplier, only to have that input VAT rejected on the grounds that the tax invoice was issued by “a person not entitled to issue tax invoices.” This article explains how the Revenue Department and the courts approach these disputes, what evidence a taxpayer should prepare to withstand scrutiny—including in online and remote transactions—and why a digital economy calls for faster detection of suppliers who issue invoices but fail to remit the VAT they collect.