What is e-Tax? How many types are there? And how to use it effectively.
e-Tax is an electronic tax invoice system developed by the Revenue Department to support the creation of tax documents in a digital format, making the buying and selling of goods and services more convenient.
e-Tax (Electronic Tax System) is a system that modern businesses should familiarize themselves with, especially merchants and business owners involved in the buying and selling of goods and services. The traditional method of issuing paper tax invoices and receipts may no longer be suitable as everything moves into the digital world. This article will introduce you to what e-Tax is, and its pros and cons, so that businesses can truly benefit from it in the buying and selling of goods and services in this digital age.
Table of Contents
• What is e-Tax? Why should businesses know about it?
• What is the importance of e-Tax?
• What are the types of e-Tax?
• What are the duties of an e-Tax issuer?
• e-Tax is an important tool that makes issuing documents easier for your business.
What is e-Tax? Why should businesses know about it?
e-Tax is an electronic tax invoice system developed by the Revenue Department to support the creation of tax documents in a digital format, making the buying and selling of goods and services more convenient, fast, and secure. This is especially true for businesses operating on online sales platforms. The e-Tax system helps reduce the use of paper documents such as tax invoices, electronic receipts, and withholding tax certificates, allowing them to be sent through an online system in a legally compliant manner.
Whether it's a small online business, an E-Commerce business, or a large corporation, all can access the e-Tax system. This helps in the efficient issuance of electronic tax invoices (e-Tax Invoice), electronic receipts (e-Receipt), and electronic withholding tax (e-Withholding Tax).
What is the importance of e-Tax?
e-Tax, or electronic tax management, is at the heart of modern business operations. The e-Tax system plays a crucial role that organizations should not overlook, as follows:
• It helps reduce the problems of complex document data management and minimizes errors that may occur from traditional document storage.
• It saves time and costs associated with the physical delivery of documents.
• It enables businesses to conduct fully electronic financial transactions.
• Tax data can be processed and analyzed for the strategic benefit of the organization.
• It reduces the use of paper and traditional documents, supporting the concept of an eco-friendly organization.
• Data processed through the e-Tax system is reliable and legally certified under electronic laws, making transactions legally binding.
What are the types of e-Tax?
Currently, the e-Tax system helps businesses issue tax documents in two main digital formats:
1. e-Tax Invoice & e-Receipt
e-Tax Invoice & e-Receipt is the issuance of tax invoices and bills/receipts in electronic format, which are authenticated with a digital signature. These documents are sent to customers in file formats such as XML, PDF, or PDF/A-3, which significantly reduces costs and saves time. Entrepreneurs who can apply for electronic tax invoices and receipts are:
• Entrepreneurs registered for Value Added Tax (VAT) (no income limit).
• Have an electronic certificate (Certificate Authority: CA).
• Have a system that can securely store and transmit electronic data.
• Are not already using the e-Tax Invoice by Time Stamp system.
• Have no history of tax evasion or issuing fake tax invoices.
2. e-Tax Invoice by Time Stamp (e-Tax Invoice by E-mail)
e-Tax Invoice by Time Stamp is a system for creating electronic tax invoices that are sent via email. Entrepreneurs must first apply to use this system and receive approval from the Revenue Department. The tax invoice is then sent to the buyer, with a copy sent to the Electronic Transactions Development Agency (ETDA) for a Time Stamp certification, which is then sent back to the buyer and seller to be kept as proof for tax purposes. Those who can apply for this type of e-Tax are:
• Entrepreneurs registered for Value Added Tax (VAT).
• Juristic persons with an annual income not exceeding 30 million baht.
• Natural persons with an annual income not exceeding 30 million baht.
• Have not been approved for or are not in the process of being approved for e-Tax Invoice & e-Receipt.
• Have no history of tax evasion or issuing fake tax invoices.
What are the duties of an e-Tax issuer?
The key duty of an entrepreneur issuing e-Tax is to comply with the law to ensure the use of electronic tax documents is complete and correct. The details are as follows:
• Prepare tax invoices and receipts in an electronic file format, such as PDF/A-3, with the required text as per Sections 86/6 and 105 bis of the Revenue Code, and it must be digitally signed.
• Deliver the tax invoice or receipt in electronic format to the buyer. It can also be printed on paper, but it must include the statement: "This document has been prepared and sent to the Revenue Department electronically."
• Prepare the tax invoice data file in XML format according to the standards set by the Revenue Department, digitally sign it, and submit the data to the Revenue Department within the tax period, before the 15th of the following month.
• Retain both the PDF and XML document files for no less than 5 years, or within the period specified by law.
Adhering to these steps is an important responsibility for entrepreneurs to ensure compliance with the requirements of the Revenue Department and the e-Tax system.
e-Tax is an important tool that makes issuing documents easier for your business.
The Revenue Department developed the e-Tax system with the main goal of reducing paper usage and increasing the efficiency of online transactions. Currently, the e-Tax system is divided into two main types: e-Tax Invoice & e-Receipt, which supports entrepreneurs of all income levels, and e-Tax Invoice by Time Stamp, which is suitable for small businesses with an annual income not exceeding 30 million baht.
To use the e-Tax system, entrepreneurs have important duties to perform, including preparing documents in electronic format, submitting data to the Revenue Department within the specified timeframe, and storing those electronic files for at least 5 years. Complying with these requirements will help ensure that tax transactions are legally correct and will increase the credibility of your business.
KGP, Payment. Make It Smooth.
LinkedIn : Kasikorn Global Payment
References
1. Summary of Key Points from the Seminar on e-Tax Invoice. (2022, July 19). The Revenue Department. https://www.rd.go.th/publish/seminar/Seminar_190722.pdf
Related News/Articles
Follow Us