Value-added tax refunds to foreign tourists are projected to increase steadily in line with growth in inbound tourism and efforts to facilitate procedures for claiming tax refunds, according to the Fiscal Policy Office.

Foreign tourists are eligible to claim refunds of the 7% value-added tax for goods purchased at registered retailers. They can claim the refund at the airport on their departure, and must show evidence of the goods in question.

Refunds are available for purchases of at least 5,000 baht.

Purchases may be combined based on sales receipts of purchases of at least 2,000 baht made from the same retailer on the same day.

Tax refunds claimed by foreign tourists in the first quarter totalled 159.65 million baht, an increase of 29% from the same period last year.

Authorities attributed the growth to the surge in passenger arrivals during the holiday season, as well as the expansion of retail stores offering VAT-refund applications for tourists.

A total of 713 stores nationwide offer tax-claim services.

In 2006, a total of 521 million baht worth of VAT refunds was made by the government, an increase of 22% from the year before.

The refund programme was implemented by the Revenue Department in 2000 under a policy aimed at helping the tourism market and supporting the country’s market position as a regional shopping destination.

Suvarnabhumi Airport processed the most claims in the first quarter, at 148.32 million baht or 93% of total VAT claims. VAT claims can also be processed at airports in Phuket, Chiang Mai, Hat Yai and U Tapao.

Clothing and apparel were the most popular goods purchased by foreign tourists seeking VAT refunds at 39% of total purchases, followed by computers and parts at 25% and leather goods at 9.7%. Ranked fourth was photographic equipment at 7% and jewellery at 5%.

Electrical goods, watches, cosmetics and other products were also popular purchases by tourists.

Source: Bangkok Post