Section 87 Subject to Sections 87/1 or 87/2, a VAT registrant shall be liable to make the following reports -
(1) output tax report,
(2) input tax report,
(3) goods and raw material report only in the case where the VAT registrant carries on business on sale of goods.
In the case where a VAT registrant is liable to tax under Section 82/16, he shall be liable to make report on value of tax base and goods and raw material report.
Reports under paragraphs 1 and 2 shall be in accordance with form prescribed by the Director-General and shall be made by each place of business.
Method of making an entry into the report shall be in accordance with rule, procedure, and condition prescribed by the Director-General and an entry shall be made within 3 working days as from the date of acquisition or disposition of such goods or service, except in the case of necessity the Director-General shall prescribe otherwise as he deems appropriate.1
1N.DG.VAT.No.89
Section 87/1 Where it appears to be necessary or appropriate, the Director-General shall, with the Ministers approval, have the power to direct the VAT registrant to make report differently from Section 87. 2
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Section 87/2 The Director-General shall, as he deems appropriate, have the power to order an agent of a VAT registrant to make reports even though he is not a VAT registrant.
The reports of an agent under this section shall be in accordance with form, rule, procedure and condition prescribed by the Director-General. 3
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Section 87/3 VAT Registrant liable to tax return filing and tax payment and person liable to making reports under the provision in this Part shall keep tax invoice, report, copy of tax invoice as well as documents supporting the making of such reports or other documents as prescribed by the Director-General at the place of business which such report is made or other places as prescribed by the Director-General for at least 5 years as from the date of tax return filing or report making, as the case may be, except-
(1) in the case where a business person temporarily registered for value added tax under Section 85/3, such keeping of report and document shall be in accordance with rule, procedure, and period of time as prescribed by the Director-General, but such period of time shall not exceed 5 years;
(2) in the case where a VAT registrant ceasing the business, the VAT registrant, a liable person in tax return filing and tax payment or a liable person in report making shall continue to keep the above reports and documents which he is liable to keep on the date of business cessation for 2 year;
(3) the Director-General, as he deems appropriate, may prescribe for the VAT registrant to keep the reports and documents for more than 5 years but not exceeding 7 years.
The keeping of tax invoices and other documents supporting the making of input tax report under Section 87(2) shall be in order and corresponding with items in the report, and shall be in accordance with rule, procedure and condition as prescribed by the Director- General. 4
4N.DG.VAT.No.54 No.89
Section 88 Assessment official shall have the power to assess value added tax, fine and surcharge under this part in the case where-
(1) it appears to an assessment official that person liable to tax does not file tax return, tax remittance return or an entry within the prescribed time;
(2) an assessment official having an evidence that a person liable to tax files tax return, tax remittance return or an entry by under declaring the amount of tax due;
(3) person liable to tax fails to comply with a summons issued by an assessment official or to answer the assessment officials questions without reasonable causes;
(4) business person fails to issue tax invoice for the purpose of input tax or copy of tax invoice for the purpose of output tax as well as other evidence for the purpose of tax calculation or tax credit;
(5) business person fails to keep copy of tax invoice for the purpose of output tax and other evidence supporting report making as prescribed by law; or
(6) it appears to an assessment official that the business person liable to value added tax registration in accordance with Section 85/1 does not register for value added tax.
Section 88/1 Assessment official shall have the power to assess value added tax charge, fine and surcharge under this Chapter in the case where any person issues tax invoice, debit note or credit note without an authorization under Section 86/13 for the amount shown in such tax invoice, debit note or credit note.
Section 88/2 For the purpose of Sections 88 and 88/1, assessment official shall have the power to -
(1) make tax return, tax remittance return or an entry base on reliable evidence where the person liable to tax does not file tax return, tax remittance return or an entry;
(2) correct tax return, tax remittance return or an entry;
(3) assess tax where there is an evidence on underpaid tax by business person or undervalued tax base;
(4) determine appropriate value by considering wealth or behaviour of business person or his trade statistics or trade statistics of business person carrying on similar business, or by considering other factors which reflects appropriate value;
(5) correct value of goods purchased or service received, as the case may be, where there arises events under Section 88(3), (4) or (5);
(6)assess tax as seen or considered correct where there arises events under Section 88(3) (4) or (5) without the need to follow (1) (4).
In exercising the power of assessment official where the events under Section 88(6) arises, a business person required to make application for value added tax registration under Section 85/1 but did not do so shall be deemed liable to tax as if he was a VAT registrant.
Section 88/3 Assessment official shall have the power to enter into a place of business of a business person whether or not he is a VAT registrant, or into other relevant places, from the sunrise to sunset or during working hours of business person, and investigate whether the business person duly comply with the provisions in this chapter; in doing so an assessment official shall have the power to order the business person or persons in that place to act as necessary for the purpose of investigating relevant document, and to seize such document.
In proceeding with paragraph 1, assessment official shall show his identification card and other document to relevant person upon entering for investigation.
Section 88/4 In proceeding with this part, an assessment official shall have the power to issue summons to person liable to tax, person acting in a representative capacity or witness and to order such person to provide accounts, documents or other evidence in relation to such matter in order to investigate, or order a witness to reply to the questions in writing, but he shall provide the time for at least 7 days as from the date of receiving a summons or order.
Section 88/5 When an assessment official has assessed value added tax in accordance with sections 88 and 88/1, he shall notify such assessment in writing to the person liable to tax or person under section 88/1; and in this case the person liable to tax or person under section 88/1 shall have the right to appeal in accordance with the provisions in Part 2, Chapter 2, Title 2, except in the case where an assessment official make an assessment as a result of causes in section 88(3) in which an appeal is prohibited.
Section 88/6 An assessment by assessment official shall be made within a period of time as follows-
(1) in respect to a business person;
(a) 2 years as from the last day of the period for tax return filing or of the period extended by the Minister or the Director-General whichever is the later date, however, only applicable to cases where person liable to tax files the tax return within such period;
(b) 2 years as from the date of filing the tax return by person liable to tax, however, only applicable to cases where person liable to tax files the tax return after the last day of the period specified in (a) but not exceeding 10 years as from the last day of tax return filing period;
(c) 10 years as from the last day of tax return filing period in the case where person liable to tax return filing fails to file the tax return or files tax return with the declared tax base lower than the value received or receivable by the business person by more than 25 percent of the tax base declared in the tax return;
(2) in respect to an importer not being a business person, 2 years as from entering; except in the case where an importer files an objection under customs law or a court action, 2 years as from the date of receiving the ruling in writing or from the date of delivering final judgment, as the case may be;
(3) in respect to person liable to remit value added tax under Sections 83/5, 83/6, or 83/7, 2 years as from the last day of filing tax remittance return.
In the case where there is a reasonable cause to believe that a business person, importer or person liable to remit value added tax declares incorrect or incomplete tax return, entry, or tax remittance return, an assessment official shall, with the Director-General approval, assess tax within 5 years as from the prescribed time under (1) (a), (2) or (3), as the case may be.
Section 89 Person liable to tax or person under section 86/13 shall be liable to fine in the cases and at the rates as follows-
(1) carrying on business without value added tax registration in accordance with Sections 85 or 85/1, or business which value added tax registration is cancelled in accordance with Section 85/17, shall be liable to fine twice the tax due in tax month for the duration of failure to comply with such provision, or 1,000 Baht, which ever is greater;
(2) failing to file tax returns or remittance return within the prescribed time shall be liable to fine twice the amount of tax due or remittable in tax month;
(3) filing incorrect tax return or remittance return affecting the amount of tax due or remittable, shall be liable to fine for the affected amount of tax;
(4) filing incorrect tax return affecting the output tax or input tax in tax month, shall be liable to fine for the amount of the deficient output tax or excess input tax;
(5) failing to issue and provide tax invoice to purchaser of goods or service recipient in accordance with Part 10, shall be liable to fine twice the amount of tax shown in tax invoice;
(6) issuing tax invoice, credit note or debit note without authorization under section 86/13, shall be liable to fine twice the amount of tax on such tax invoice, credit note or debit note;
(7) using false tax invoice in tax calculation partly or wholly, shall be liable to tax twice the amount of tax on such invoice;
in the case where the user of the tax invoice fails to identify the issuer of the tax invoice, such tax invoice shall be deemed false tax invoice;
(8) failing to keep a copy of tax invoice for the purpose of output tax as prescribed by law, shall be liable to fine 2 percent of the amount of tax on tax invoice;
(9) failing to keep tax invoice for the purpose of input tax creditable in tax calculation as prescribed by law, shall be liable to fine 2 percent of the credited amount;
(10) failing to make report as prescribed by law or other reports as prescribed by the Director-General in accordance with Section 87/1, or there is shortage of goods in goods and raw material report, shall be liable to fine twice the amount of tax calculated on the unreported or incorrectly reported tax base.
Fine in this section may be waived or reduced according to regulations prescribed by the Director-General with Ministers approval.
Section 89/1 Any person fails to pay or remit tax within the time prescribed in this Chapter shall be liable to surcharge on 1.5 percent of payable or remittable tax excluding fine per month or fraction thereof;
in the case where the Director-General approves the time extension to pay tax as prescribed by section 3 octo and such tax is paid or remitted within the extended time, surcharge under paragraph 1 shall be reduced to 0.75 percent per month or fraction thereof;
the calculation of surcharge under paragraphs 1 and 2 shall accrue from the day following deadline of tax return filing or remittance return filing under Part 7 to the date of tax payment or remittance; but the calculated surcharge shall not exceed the amount of tax payable or remittable.
Section 89/2 For the purpose of tax collection, fine and surcharge in this Chapter shall be deemed value added tax.
Section 90 The following persons failing to comply with the provisions stated below shall be fined not more that 2,000 Baht-
(1) person not providing copy of contract or document under Section 77/4(2);
(2) VAT registrant failing to file a tax return under Sections 83 or 83/1;
(3) person liable to tax failing to file a tax return under Section 83/2;
(4) person liable to tax return filing failing to file a tax return under Section 83/3;
(5) person liable to remit tax failing to remit value added tax under Sections 83/5, 83/6 or 83/7;
(6) importer failing to entry under Sections 83/8 or 83/9;
(7) VAT registrant failing to notify changes in particulars of value added tax registration under Section 85/6;
(8) VAT registrant failing to return a certificate of value added tax registration under paragraph 3 of Section 85/7, paragraph 2 of Section 85/8, paragraph 2 of Section 85/15 or paragraph 2 of Section 85/17;
(9) VAT registrant failing to notify a change of place of business under paragraph 1 of Section 85/8;
(10) VAT registrant failing to notify temporary business cessation under Section 85/12;
(11) estate possessor, estate administrator or heir of VAT registrant failing to return a certificate of value added tax registration under paragraph 3 or paragraph 5 of Section 85/16;
(12) VAT registrant issuing tax invoice, abbreviated tax invoice, credit note or debit note with incomplete particulars in the matter of substance under Sections 86/4, 86/5, 86/6, 86/7, 86/9, 86/10 or 86/11;
(13) VAT registrant failing to issue certified copy of tax invoice, credit note or debit note under Section 86/12;
(14) VAT registrant having goods in excess of that reported in goods and raw material report under Section 87;
(15) VAT registrant making report not in accordance with rule; procedure, and condition prescribed in Section 87 or with provision prescribed by the Director-General under Section 87/1;
(16) VAT registrant intending not to keep tax invoice, copy of tax invoice or such document not in accordance with rule, procedure and condition prescribed in Section 87/3.
Section 90/1 The following persons failing to comply with the provisions stated below shall be fined not more than 5,000 Baht-
(1) an agent failing to proceed with the registration of a business person residing abroad under Section 85/2;
(2) VAT registrant failing to display certificate of value added tax registration under Section 85/4;
(3) VAT registrant failing to notify the opening of additional place of business or the closing of place of business under paragraph 1 or 2 of Section 85/7;
(4) VAT registrant failing to notify the transfer of part of business or the receive of transfer of business under Section 85/13;
(5) VAT registrant failing to notify the cessation of business or transfer of business under Section 85/13 or paragraph 1 of Section 85/15;
(6) an agent of a VAT registrant residing abroad making reports not in accordance with rule, procedure or condition as prescribed by Section 87/2.
Section 90/2 The following persons failing to comply with the provisions stated below shall be sentenced for not more than 1 month or fined not more that 5,000 Baht or both-
(1) VAT registrant failing to comply with Section 82/18(2);
(2) any business person liable to register for value added tax carrying on business without value added tax registration under section 85/1, paragraph 2 of Sections 85/13 or 85/14;
(3) VAT registrant failing to issue tax invoice or its copy, or failing to provide the tax invoice or its copy to the purchaser or service recipient under paragraph 1 of Section 86, or failing to issue and provide tax invoice or its copy to the purchaser or service recipient at the request of the purchaser or service recipient under paragraph 2 of Section 86/8.
(4) a business person registered for temporary value added tax registration issuing tax invoice not in accordance with rule, procedure and condition as prescribed by the Director-General under paragraph 2 of Section 86;
(5) an agent issuing tax invoice on behalf of VAT registrant not in accordance with rule, procedure and condition as prescribed by the Director-General under paragraph 4 of Section 86;
(6) VAT registrant failing to comply with regulations on cash register machines under paragraph 6 of Section 86/6;
(7) any one not complying with a summons or order of assessment official under Section 88/4.
Section 90/3 The following persons failing to comply with the provisions stated below shall be sentenced for not more than 6 months or fined not more than 10,000 Baht, or both-
(1) an agent of a VAT registrant residing abroad issuing tax invoice without approval under paragraph 2 of Section 86/2
(2) VAT registrant using cash register machine without approval under paragraph 6 of Sections 86/6 or 86/7;
(3) VAT registrant failing to make reports under Section 87 or as prescribed by the Director-General under Section 87/1;
(4) an agent of a VAT registrant residing abroad failing to make reports under Section 87/2;
(5) any one obstructing or failing to accommodate the performing of assessment official or acting against the order of an assessment official under paragraph 1 of Section 88/3.
Section 90/4 The following persons failing to comply with the provisions stated below shall be sentenced from 3 months up to 7 years and fined 2,000 up to 200,000 Baht-
(1) VAT registrant with intention to evade or trying to evade value added tax, issuing tax invoice, debit note or credit note without authorization under paragraph 2 of section 86 or Section 86/1;
(2) an agent of VAT registrant residing abroad with an intention or trying to evade value added tax, issuing tax invoices without authorization under paragraph 1 of Section 86/2;
(3) any one issuing tax invoice, debit note or credit note without authorization under Section 86/13;
(4) VAT registrant with intention to or trying to evade tax failing to report or making false report stated in section 87 or as prescribed by the Director-General under Section 87/1;
(5) VAT registrant with intention to or trying to evade value added tax failing to issue tax invoice, debit note or credit note or their substitute;
(6) VAT registrant with the intention to or trying to evade value added tax or requesting value added tax refund acting falsely, fraudulently or by similar nature
(7) business person with intention to use false tax invoice or illegally issued tax invoice for tax credit.
Section 90/5 Where the wrongdoing person subject to penalty under this Chapter is a juristic person, the managing director, director or person acting in a representative capacity of such juristic person shall be liable to the penalty as prescribed for such false action, except he can prove that he has no consent or no part in such wrongdoing of the juristic person.