Thai government to use blockchain for VAT refunds, bonds, procurement

Yesterday, Thailand’s Ministry of Finance announced three blockchain projects spearheaded by four agencies and in co-operation with Krung Thai Bank. The ministry has signed agreements to develop the initiatives and boost efficiency through the digitalization of processes.

Tourist VAT Refunds

The first project is for issuing value-added tax (VAT) refunds for tourists. According to the ministry, at least 2 million foreign tourists purchase goods and services in Thailand, amounting to about 50 billion baht ($1.66 billion) per year. On average, 200,000 tourists claim VAT refunds every month. Seventy percent come from China and usually do not hold cash. The country’s Revenue Departments, Customs Department and Krung Thai Bank are developing a blockchain mobile application for tourists to apply for refunds. The goal is to increase transparency, security and prevent fake refund claims. It will also help streamline government operations by reducing paper-based documentation.

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