Warning over new VAT threat

The proposal to lower the value-added tax (VAT) registration threshold to include businesses with annual revenue of less than 1.8 million baht could increase the burden on small retailers already grappling with weak consumer spending and intense competition, according to the Thai Wholesale and Retail Trade Association.

- KUAKUL MORNKUM

Only businesses with annual revenue of 1.8 million baht or more are required to register for VAT in the current tax code.

Once registered, they must submit VAT documents to the Revenue Department every month, even if there is no VAT due for that period.

Somchai Pornrattanacharoen, honorary advisor to the association, opposed the proposal and argued that taxing small businesses would burden them.

“If the government collects VAT from small shops, it will create an inconvenience for them,” he said.