Diner publicly declines VAT payment, resulting in disruptive incident at the eatery.
A Customer's Angry Standoff at a Ramen Joint Over VAT
In a heated scene at a bustling ramen eatery nestled within a Bangkok petrol station, a customer fiercely resisted paying the Value-Added Tax (VAT) on their bill, leading to a confrontation with fellow patrons.
The standoff was captured on video by another diner and later shared on TikTok. The incident took place on June 8 at a PTT filling station on Sukasawat Road, as per the TikTok user @moveforwardlandslide. The customer in question, a woman, found herself embroiled in a loud argument with the restaurant staff, insisting she was being overcharged.
The contention centered around the inclusion of a 7% VAT in the meal's total price. The harried customer refused to acknowledge the VAT in the price, arguing that her bill should reflect only the cost of the food and drinks she consumed. The bill for the meal was 321 baht, with a 21 baht VAT added on a 300 baht meal cost.
The TikTok user claimed that the customer stubbornly disregarded the explanations from the restaurant staff, demanding they recalculate the bill in the same manner as a 7-Eleven store, where, according to her, VAT isn't charged in the same way.
With only two female staff members on duty, the TikTok post suggests they were visibly distressed by the situation. A PTT staff member attempted to mediates but met with similar resistance.
As the angry customer tried to leave without paying, other patrons, including the TikTok user, blocked her exit, urging her to settle her dues. Eventually, the customer paid up, but the altercation continued during the transaction.
The TikTok user subsequently posted the video online, expressing empathy for the restaurant staff and condemning the customer's actions. The poster stated that customers should honor their full obligation to pay, including taxes, and the woman was wrong to publicly belittle the staff.
Comments under the video showed solidarity with the restaurant staff and some encouragement for them to take legal action against unruly customers.
VAT and Food Establishments in Thailand
In Thailand, Value Added Tax (VAT) is a significant element of the tax system that impacts businesses, such as food and drink establishments located within petrol stations. While a ramen joint's specific circumstances might be unique, VAT rules generally apply consistently across industries.
When it comes to VAT in Thailand:
- Rates: The standard VAT rate is typically 7%, but certain goods and services may be subject to reduced or exemptions rates.
- Application: All food and drinks sold in Thailand, including those at restaurants and cafes, are subject to VAT unless they are explicitly exempted or zero-rated.
- Input Tax Credit: Businesses can recuperate input VAT credits on purchases used for taxable activities, which help in lessening the overall VAT burden. However, careful documentation and invoicing are essential for claiming these credits.
Disputes over VAT, like the one at the ramen restaurant in a petrol station, can be resolved by consulting tax authorities or advisors to clarify and resolve issues. This may involve reexamining invoices, transactions, and ensuring compliance with VAT regulations. With digitalization and electronic invoicing emphasized by the Thai government, proper documentation and accurate record-keeping are essential to uphold compliance with tax laws.
- Despite the heated argument at a ramen joint regarding the application of Value-Addered Tax (VAT) on a meal, it is important to note that VAT is a common aspect of the tax system for businesses, particularly in the food and drink industry, as detailed in the general-news articles.
- In light of the incident, a customer's resistance to paying VAT at a petrol station ramen joint highlighted the significance of understanding VAT rates, applications, and input tax credits in Thailand's business sector, as stipulated in the finance category.
