Excise Tax is an indirect tax on certain goods that is paid by the manufacturer, merchant, or importer as opposed to the consumer. Products such as petroleum products, tobacco, liquor, beer, soft drinks, crystal glasses, perfume and cosmetic products, air conditioners not over 72,000 BTU, and passenger cars with ten seats or less, whether manufactured locally or imported, as well as on certain entrainment or recreation businesses such as massage parlors, nightclubs, karaoke bars, and cinemas are subject to excise tax.
The rules and regulations for Excise tax are covered under Excise Tax Act B.E. 2560 (2017), which replaces and consolidates all relevant Excise Acts (including Tobacco Act, Liquor Act, and Excise Tax Act) into one Act.
Manufacturers, importers and service providers must register for Excise tax within thirty days before the date of production, the start date of import, or the start date of service. The tax is calculated from the suggested retail price, which includes the production cost, management cost and standard profit, excluding VAT. If the trader has used an unreasonably low price, the Excise Department can establish a new recommended retail price.
Excise tax is collected by the Excise Department. Prior taking the goods from the factory or bonded warehouse, each manufacturer must submit the tax return and payment. If the goods are also subject to VAT, the manufacturer must submit tax returns and tax payments to the Excise Department within 15 days from the end of the following month.
According to the Excise Act, the persons responsible for paying excise tax shall have the duty to pay an additional excise for goods and services in support of local government at a specific rate, but no more than 10 percent of the excise tax.
Health Tax and Thai Public Broadcasting Service (TPBS tax or TV tax) may also apply to certain cigarettes and alcohol products.
If the taxpayer fails to file the excise tax return and to pay excise in a timely manner, he is subject to a fine of two times the amount of excise to be paid, plus a surcharge of 1.5% of the tax per month without exceeding the amount to be paid.