“Mastering Input & Output Tax Reports: A Complete Guide for Businesses under Thailand’s Revenue Code”

A person in a white shirt is pointing upward, highlighting the importance of understanding purchase and sales tax reports.

Introduction

Tax compliance is a critical part of running a business in Thailand. One of the most important aspects is the correct preparation of Purchase-Sales Tax Reports and Tax Invoices. These documents are required under Thailand’s Revenue Code and are regulated by the Revenue Department (กรมสรรพากร). Failure to comply can lead to penalties, surcharges, or even audits.

1. Legal Framework

The preparation of Purchase-Sales Reports and Tax Invoices in Thailand is governed by the following laws and regulations:

• Revenue Code of Thailand – Sections 86/4 and 86/6 outline the issuance and reporting requirements for tax invoices.

• VAT Regulations issued by the Revenue Department.

• Accounting Act B.E. 2543 (2000) – Sets requirements for bookkeeping and document retention.

Reference: Thai Revenue Department

2. Input and Output Tax Reports

Businesses registered for VAT must prepare two reports every month:

• Input Tax Report – Summarizes VAT paid on purchases.

• Output Tax Report – Summarizes VAT collected from sales.

Both reports must reconcile with your monthly VAT return (Form P.P.30).

3. Issuing Valid Tax Invoices

Under Section 86/4 of the Revenue Code, tax invoices must contain:

• Name, address, and tax ID of the seller and buyer

• Invoice number and issuance date

• Description, quantity, and price of goods/services

• VAT amount separately shown

Failure to issue a valid tax invoice may result in a penalty of 2,000 THB per document and can affect your right to claim input tax credits.

A woman diligently works on her laptop at a desk, focused on issuing a valid tax invoice, with paperwork and a smartphone nearby.

4. Penalties for Non-Compliance

According to the Revenue Department:

• Late filing of VAT returns → Surcharge of 1.5% per month

• Incorrect or missing tax invoices → Fines up to 2,000 THB per document

• Intentional tax evasion → Criminal penalties under the Revenue Code

Conclusion

Accurate preparation of Purchase-Sales Reports and Tax Invoices is not just a best practice — it’s a legal requirement in Thailand. Staying compliant protects your business from penalties and builds trust with clients and partners.

If you need expert assistance, Local Thai Tax offers professional accounting and tax solutions tailored to your business needs. 📩 email: contact@localthaitax.com 📞 Tel: +66 62 216 4425🌐 www.localthaitax.com