We are creating some awesome events for you. Kindly bear with us.

Thailand to Adopt DLT-based VAT Refund Service for Tourists

DLT-Based VAT Refund Service
Image Credits: The Bangkok Post, News Article

The Finance Ministry plans to adopt blockchain-based value-added tax (VAT) refund service for foreign tourists, starting from the end of this month.

The blockchain technology for VAT refunds should speed up the process for tourists as details of their purchases will be immediately shared with the Revenue Department and the Customs Department once shops key in the information in the system, according to Thailand’s Finance Minister.

This announcement was made after he signed a memorandum of understanding (MoU) along with Krungthai Bank, a state-owned bank under a license issued by the Ministry of Finance, to apply the technology in three pilot projects.

Foreign tourists will be able to claim VAT refunds via an application from 28 November 2019. They are required to identify the channel from which they want to receive the money-back, he said.

At least 2 million foreign tourists purchase goods and services in Thailand, amounting to 50 billion baht a year. An average of 200,000 tourists a month claim a VAT refund, 70% of whom are Chinese travellers who do not like to hold cash.

Blockchain technology can reduce the document verification process and the use of 10 million sheets of paper a year, lower cash management costs and slash congestion at VAT refund counters.

The blockchain-based VAT refund service can automatically approve such claims if the purchase amount is insignificant, said a source familiar with the issue, without specifying an amount.

The VAT refund for foreign tourists is one of three projects that have adopted blockchain technology. The others are scripless savings bond issuance and letters of credit (LC) for electronic procurement.

The Public Debt Management Office plans to allow people to download Bond Direct applications to purchase savings bonds, with values starting from one baht. The first savings bond issuance available through the app is scheduled to be sold in May 2020.

With blockchain technology, people can conveniently access savings bond subscriptions and shorten the scripless bond issuance process to two days from 15 days at present.

The process for blockchain-based LC issuance for state procurement will be streamlined to inspect collateral put up by bidders and build up confidence about collateral security.

The ministry is encouraging agencies under its direction to adopt blockchain technology.

Pushing Blockchain Tech Across All Operations and Processes

According to an article from August 2019, the Revenue Department and the Comptroller-General’s Department launched a pilot project using blockchain technology aimed at streamlining work processes.

The innovative technology also helps provide information associated with value-added tax and inspecting VAT refunds to reduce fraud, said the Finance Minister.

In the next stage, the Minister will work to connect data from three tax-collecting agencies – the Revenue Department, the Customs Department and the Excise Department – using blockchain technology to increase working and inspection efficiency.

The Customs Department is the second government agency in ASEAN to adopt a blockchain-based shipment tracking and information sharing platform to streamline procedures.

Blockchain technology will be a boon to the Finance Ministry, which handles a lot of data. The innovation will enable information to be shared across departments and with outsiders.

In addition, the Finance Ministry plans to harness big data to manage the information of the 14.6 million smartcard holders, including their debt. 29,763 recipients of the welfare scheme are indebted based on National Credit Bureau data.

PARTNER

Qlik’s vision is a data-literate world, where everyone can use data and analytics to improve decision-making and solve their most challenging problems. A private company, Qlik offers real-time data integration and analytics solutions, powered by Qlik Cloud, to close the gaps between data, insights and action. By transforming data into Active Intelligence, businesses can drive better decisions, improve revenue and profitability, and optimize customer relationships. Qlik serves more than 38,000 active customers in over 100 countries.

PARTNER

CTC Global Singapore, a premier end-to-end IT solutions provider, is a fully owned subsidiary of ITOCHU Techno-Solutions Corporation (CTC) and ITOCHU Corporation.

Since 1972, CTC has established itself as one of the country’s top IT solutions providers. With 50 years of experience, headed by an experienced management team and staffed by over 200 qualified IT professionals, we support organizations with integrated IT solutions expertise in Autonomous IT, Cyber Security, Digital Transformation, Enterprise Cloud Infrastructure, Workplace Modernization and Professional Services.

Well-known for our strengths in system integration and consultation, CTC Global proves to be the preferred IT outsourcing destination for organizations all over Singapore today.

PARTNER

Planview has one mission: to build the future of connected work. Our solutions enable organizations to connect the business from ideas to impact, empowering companies to accelerate the achievement of what matters most. Planview’s full spectrum of Portfolio Management and Work Management solutions creates an organizational focus on the strategic outcomes that matter and empowers teams to deliver their best work, no matter how they work. The comprehensive Planview platform and enterprise success model enables customers to deliver innovative, competitive products, services, and customer experiences. Headquartered in Austin, Texas, with locations around the world, Planview has more than 1,300 employees supporting 4,500 customers and 2.6 million users worldwide. For more information, visit www.planview.com.

SUPPORTING ORGANISATION

SIRIM is a premier industrial research and technology organisation in Malaysia, wholly-owned by the Minister​ of Finance Incorporated. With over forty years of experience and expertise, SIRIM is mandated as the machinery for research and technology development, and the national champion of quality. SIRIM has always played a major role in the development of the country’s private sector. By tapping into our expertise and knowledge base, we focus on developing new technologies and improvements in the manufacturing, technology and services sectors. We nurture Small Medium Enterprises (SME) growth with solutions for technology penetration and upgrading, making it an ideal technology partner for SMEs.

PARTNER

HashiCorp provides infrastructure automation software for multi-cloud environments, enabling enterprises to unlock a common cloud operating model to provision, secure, connect, and run any application on any infrastructure. HashiCorp tools allow organizations to deliver applications faster by helping enterprises transition from manual processes and ITIL practices to self-service automation and DevOps practices. 

PARTNER

IBM is a leading global hybrid cloud and AI, and business services provider. We help clients in more than 175 countries capitalize on insights from their data, streamline business processes, reduce costs and gain the competitive edge in their industries. Nearly 3,000 government and corporate entities in critical infrastructure areas such as financial services, telecommunications and healthcare rely on IBM’s hybrid cloud platform and Red Hat OpenShift to affect their digital transformations quickly, efficiently and securely. IBM’s breakthrough innovations in AI, quantum computing, industry-specific cloud solutions and business services deliver open and flexible options to our clients. All of this is backed by IBM’s legendary commitment to trust, transparency, responsibility, inclusivity and service.

Send this to a friend