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What is the difference between Tax and VAT?

Recently, TAX and VAT have been a constant online debate over whether they are the same or different, and if they are also a tax for the government or the store getting this part. ACU Pay is going to answer this question.

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What is Tax?

TAX is what the government collects from the public for the public good without any direct remuneration for taxpayers, divided into direct taxes (taxes that cannot be pushed to others) and indirect taxes (taxes that can be pushed to others).

Who is responsible for paying tax?

In the case of an individual with income such as salary or wages will be responsible for paying personal income tax, while the corporation or corporate partnership has to pay corporate income tax.

What is VAT?

The Revenue Department defines VAT (Value Added Tax) as a tax on the sale of goods or services at each stage of production and sale of goods and services, both produced domestically and imported from abroad, categorized in indirect taxes.

Who is responsible for paying VAT?

Individuals or juristic persons with an income exceeding 1.8 million baht per year are required to register VAT and submit taxes every month even without income.

Does the general public have to pay VAT?

The general public does not directly pay taxes, but entrepreneurs charge VAT from buyers or service recipients and issue tax invoices as evidence of VAT collection, which is equivalent to indirect taxation.

Is paying VAT considered as paying tax?

If VAT is viewed in the aspect of state-earned, VAT will be a type of tax that consumers and citizens must “pay” If it is viewed in the context of “tax base”, it must be said that each person pays different taxes depending on what kind of tax base they have and what the law requires to collect. Some people pay both income tax and VAT, while some people don’t pay income tax, but they still have to “pay VAT” from their spending. In conclusion, if you ask whether the person who pays VAT is considered paying taxes or not. The answer to this question is “Yes”

Taxes are money collected by the state from the general public and are not the only type charged. It depends on the “tax base” stipulated to have “regulations” that have to be charged. All of us are taxpayers who have to pay taxes more or less depending on what we’re paid for and whether or not it falls under the “tax base” of the state. However, paying more or less taxes is a different matter from the rights of the people.

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