7 % VAT on condo rental

[Dave 21]

HI

 

We booked a condo for family coming over, just got an email from the rental people see below.

 

We were just informed today by the Revenue department that the government now requires to charge the 7% VAT TAX at the time of check in. Sorry for the change but this is out of my control.

 

If for some reason you do not want to keep your reservation with us we will understand but please notify us in 48 hours.

 

You will be offered a full refund of your deposit money.

Thank you for your understanding and we apologize very much for this change.

 

Is this the start of chasing up the people who rent condos out, someone has to pay for the new rail network.

[Parkwahn 61]

Excellent rate for landlords, bargain...

[cicero1520 19]

Sounds like they are genuine to me?

[Idefix 2,275]

Sounds like they are genuine to me?

Not to me. I posted that somewhere else:

Hi. I can't understand how some members defend DW? In the case of a new tax or a modified tax by the government, yes I can understand they ask for more to their customers. But here there is absolutely no recent change. This VAT exists for as long as I can remember. DW agreed a price for a rent. It's very bad attitude from them to now ask for more when no new tax appears.

 

In fact it seems that DW "forgot" during years to pay the due VAT. They made a very huge benefice on it. (20+ condo at 20+k/month -> more than 30'000 baht unpaid VAT/month!). Now they probably have been found and have to pay. They really could (and should!) take on them the VAT of those who already made a reservation by including the VAT in the paid price. A very bad attitude from a company with a rather good reputation, yes, but also a reputation to have rather expensive prices, and for which there is no "small profits" (like 1000 baht for weekly cleaning when rooms next doors are 500-600 baht...)

 

Bad point to them.

Edit: This quote was from a post I made on PA forum. For some reason it "disappeared" from the topic, and so disappeared several messages stating that VAT was a bad excuse here for this increase... Thanks PA

Edited February 8, 2015 by Idefix

[torrenova 644]

Decent agent would simply honour existing bookings at the quoted rate and negotiate in private with the landlords to cover this on a split basis probably.

 

Going forward, simply raise rates to accommodate.

 

Pissing people off for a maximum of 7% is plain stupid.

[Greg_B 306]

http://usa.siam-legal.com/property-thailand/transfer-taxes.php

 

Corporate property owners that are registered for the Value Added Tax (VAT) will have to pay a 7% tax on the furniture and service income.

[MM 6,562]

Not to me. I posted that somewhere else:

 

Edit: This quote was from a post I made on PA forum. For some reason it "disappeared" from the topic, and so disappeared several messages stating that VAT was a bad excuse here for this increase... Thanks PA

It was a very well-written and accurate response too.