The Revenue Department is planning to launch a value-added tax (VAT) reverse charge scheme in the scrap metal industry to reduce the risk of refund fraud by January 2024, says director-general Lavaron Sangsnit. The VAT reverse charge scheme, which the department plans to issue a decree for by January next year, will require iron smelter businesses, the ultimate buyer in the transaction chain of the scrap trading ecosystem, to issue both purchase and sales invoices and submit VAT to the department. On the other hand, a tax invoice which the buyer receives is called purchase tax. In the case of a VAT-registered buyer, the buyer has the right to deduct in accordance with the general provisions for the VAT the buyer calculates and reports. If the purchase tax is greater than the sales tax, the business can then claim the deduction or refund of VAT.

Source: Bangkok Post July 18, 2023 11:38 UTC