Hey there…
This is one of the first use case where blockchain is used by Tax authorities to process refunds to Assesses.
The Project has happened in Thailand and they used this for VAT refunds to Tourists
Lets see the detailed insights on how did they do it !!
The Finance Ministry of Thailand
Krungthai Bank – Bank which partnered with this Project
Foreign Tourists – As Service Receivers
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 blockchain by respective sale outlets in a distributed ledger. The info will be accessed by the Revenue Department and the Customs Department
On claiming the refund by us, The blockchain-based VAT refund service can automatically approve such claims once it matches the data inputs
(We)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.
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.
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.
Using Blockchain, People can conveniently access savings bond appications 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.
