VAT Reverse Charge scheme for scrap metal industries
The Revenue Department of Thailand intends to introduce a VAT reverse charge scheme in the scrap metal industry in 2024 as a means of combating VAT refund fraud. Lavaron Sangsnit, Director General, says more than half of the fake VAT invoices were issued by scrap metal businesses to get tax refunds. Businesses involved in the scrap trading ecosystem, including iron smelters businesses and the ultimate buyers, will be required to submit purchase or sale invoices to the department. An official decree will be issued by the RD in January 2024.