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As title of this video suggests, we are discussing Value Added Tax, that's VAT, specifically exemption from VAT under what is being called the Eastern Economic Corridor proposals which are coming online here in Thailand.

In a recent article from Thai PBS World, that is thaipbsworld.com, this issue was discussed, the article is titled: Thai Cabinet approves Eastern economic Corridor Free Trade Zone. Quoting directly: "The Cabinet approved a proposal Google from the EEC (Eastern Economic Corridor) policy committee today (Tuesday) to upgrade the status of the EEC from a "Special Economic Zone" to a "Free Trade Zone", in which incentives such as income tax breaks, further easing of employment restrictions for foreigners, VAT exemption for tourists buying goods there and permits for 24-hour recreational activities and liquor sales will be granted to businesses in the area." Quoting further: "More incentives under consideration include VAT exemption for products bought by tourism in the EEC up to a value of 20,000 Baht per head per year for the first 10 years, custom duties and excise tax exemptions for personal belongings brought into the country by travellers and goods purchased in the EEC worth up to 200,000 Baht per head, per year for the first 10 years." 

So interesting. It seems like the EEC, there is a lot going on down there to not only try and spur business investment, foreign direct investment, technological exchange by bringing in businesses to the Eastern Economic Corridor, but they are also doing a lot of things that would look to me that would spur tourism spending specifically spending by folks that come on a vacation and they may buy; and when they say 20,000 Baht per head, I believe they mean, I don't know this for certain, but it looks to me like they mean, well that's 20,000 Baht, that is the 7%. So just to give you a for example, I mean if you buy something for 100,000 Baht in Thailand, the VAT on that is going to be 7,000 Baht so to get up to a little under 20,000 Baht, you would have to buy something in the neighborhood of 300,000 Baht. That is $10,000 roughly of goods and services that may be VAT exempt. 

So interesting stuff going on down in the EEC. I definitely think it is a place to keep one's eye on especially if you are looking to invest, do business or live long term here in Thailand. We will certainly keep you updated on this channel as the situation evolves.