Thailand Excise Tax Law

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Thailand Excise Tax Law

How will Excise tax be levied?

The industrialist, importer, service provider or other persons having excise burden under this Act shall have the duty to pay excise upon:

  • Ad Valorem Duty or Specific Duty of goods or service; or
  • Ad Valorem Duty and Specific Duty of goods or service.

The excise tax shall be no more than the rate which is specified by the Excise Tariff Schedule. This shall apply at the time the excise liability arose.

 

What is Ad Valorem Duty and Specific Duty?

 Ad Valorem Duty is a tax whose amount is based on the value of a transaction or of property, rather than on their weight or the number of units.

Specific duty based on the weight, volume, item count or quantity regardless of monetary value or market price.

 

When does the Excise burden begin?

Product manufactured within the Kingdom

  • The excise burden begins when the goods are taken from the factory; except that such goods are taken from the factory for maintenance in a bonded warehouse, a free zone, or free-trade zone.
  • The excise burden begins when the goods are taken from a bonded warehouse, a free zone, or free-trade zone; provided that such goods are to be maintained at another warehouse.

Imported goods

The excise burden begins simultaneously when the import duties for imported goods under the law on customs begin. The Minister may issue a Notification requiring the Customs Department to collect excise on behalf of the Excise Department, and the Minister shall also have the power to require the payment of tax or the placement of money or other securities or the provision of a guarantor as security for tax payment before releasing such goods from the custody of the Customs Department.

Service

The excise burden begins upon receiving the payment for service charge.

 

Who needs to register for Excise tax?

Businesses involved in the manufacturing, importing of goods or operating a service facility need to register for Excise tax.

If the industrialist or service provider of a service facility has more than one factory or service facility, he shall submit a request separately for each factory or service facility.

A request for excise registration must be submitted to the Excise Area Office where the factory, business office or service facility is located, within thirty days before the date of production, the start date of import, or the start date of service.

 

What are the liquor and tobacco selling license registration fees under the new excise act?

Whiskey Selling License

Type 2, for selling every kind of whiskey, lower than 10 liters per one time sell  

  • For entrepreneurs who registered VAT 2,000     Baht per year
    (Entrepreneurs earning more than 1.8 Million Baht income has to register VAT)                 
  • Non-VAT registered                                                    300      Baht per year

Tobacco Selling License

Type 2, for retail selling tobacco, lower than 1,000 roll per one time selling of Cigarette and Cigar              

  • VAT registered                                                                                    500      Baht per year                    
  • Non-VAT registered    100      Baht per year

The above mentioned fees do not include the fee of Administrative Organization at 10%.

 

What is the rule on paying additional excise for goods and services?

According to the Excise Act B.E.2560, the person with excise burden under this Act shall have the duty to pay additional excise for goods or services in support of local government at the rate specified in a Royal Decree but no more than ten percent of the excise.

Entertainment or recreation business which provides food and alcohol beverage (nightclub, discotheque, pub, bar, cocktail lounge) and close after midnight has to pay 10% tax from all income.

 

What happens upon failure to conduct excise filing?

A person with excise burden who fails to conduct excise filing in order to avoid or evade excise payment shall be liable to a term of imprisonment of not exceeding six months or to a fine of not exceeding 200,000 Baht or both.