TRA ready to file appeal of tourist VAT refund contract
A group of retailers has called on the government to think twice about the downtown value-added tax (VAT) refund contract for foreign tourists outside airports, reasoning that Siam Paragon, CentralWorld, Central Chidlom, The Emporium and Robinson Sukhumvit are located in areas with the highest tourist densities, making them the most appropriate refund points.
The five malls represent up to 60% of total tax refunds worth 2.3 billion baht in 2017, said Worawut Oonjai, president of the Thai Retailers Association (TRA).
Mr Worawut said the association will file an official appeal with the government once the TRA receives a confirmation letter from the Revenue Department that CP All Plc, the operator of 7-Eleven convenience stores, is the only operator approved for the trial run of downtown VAT refunds for tourists. CP All chose 7-Eleven stores adjacent to the Lido theatre in Siam Square, Bangkok Night Bazaar and a Yaowarat branch.
“We would like the Revenue Department to reconsider Siam Paragon, CentralWorld, Central Chidlom, The Emporium and Robinson Sukhumvit as the sole providers of VAT refunds for tourists,” he said. “The TRA and members insist that it is important to use these five new locations to trial the Revenue Department’s VAT refunds for tourists because they are prepared in terms of strategy and convenience for tourists.
“According to our survey and based on our experience, VAT refunds for tourists are at shopping complexes for convenience. If the Revenue Department opens a trial VAT refund for tourists only at convenience stores, the Revenue Department may not receive accurate results.”
Chatrchai Tuongratanaphan, the TRA’s executive director, said the opening of many new locations for VAT refunds to tourists does not have any negative impact on the Revenue Department, as the investment belongs to the private sector.
“The Revenue Department has sampled incorrectly and got inaccurate results,” he said. “This was akin to surveying whiskey-drinking behaviour in Thailand by sampling 10-year-old children.”
Mr Chatrchai said the department’s discretion in selecting the winner makes no sense.
“We would like to know why the department has limited the service points to only three,” Mr Chatrchai said, pointing out that the association and group of retailers have worked together with the Revenue Department for almost a year to provide such services to foreign tourists and set up the VAT Refund Center Thailand. “It was well understood from the beginning that these five locations are the best options for tourists’ convenience and to ensure the project’s success.”
The Revenue Department insisted on Tuesday that the selection of Counter Service Co, a payment service provider wholly owned by CP All Plc, to provide VAT refunds for foreign tourists outside airports was done in a transparent manner.
Pinsai Suraswadi, director of tax policy and planning at the Revenue Department, said three companies sought licences to run the VAT refund service outside airports, but two of them failed to meet the criteria.