Hi Guys, in this post let us see how blockchain has been deployed to provide VAT refund to Tourists. The revolutionary project has taken place in Thailand
Parties Involved–
The Finance Ministry of Thailand
Krungthai Bank
Foreign Tourists – Service Receivers
The new big thing –
The blockchain-based value-added tax (VAT) refund service for foreign tourists will be starting from the end of this month. (Say Nov 28th 2019)
When we buy any goods on which we paid some duties and taxes, the data is loaded to the blockchain by respective sale outlets in a distributed ledger. The info will be accessed by the Revenue Department and the Customs Department
The blockchain-based VAT refund service can automatically approve such claims once it matches the data inputs
Tourists are required to identify the channel such as credit card or WeChat from which they want to receive the money-back.
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.
Key Statistics –
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 travelers who do not like to hold cash.
The VAT refund for foreign tourists is one of the three projects that have adopted blockchain technology. The others are scripless savings bond issuance and letters of credit (LC) for electronic procurement.
Using Blockchain, People can conveniently access savings bond applications and subscriptions ranging from 1 Bhat and shorten the scripless bond issuance process to two days from 15 days at present. (This is expected to be launched in May 2020)
Blockchain-based LC issuance for state procurement will be streamlined to inspect collateral put up by bidders and build up confidence about the collateral security.
With these initiatives, the ministry is encouraging agencies under its direction to adopt blockchain technology.
Source – Bangkokpost
Image Credits – Datafloq
