American Luxury Retailer

Challenges 

Our client operates a luxury jewellery retail store in Bangkok. It manages the accounting and finance from a regional team in Hong Kong. However, the complexity of the VAT, withholding tax, documentation in Thai and following up with local vendors is difficult to manage from outside of Thailand.

Solution 

Forvis Mazars was placed in the centre of the process, working with both the local and regional teams. We receive the supporting documentation and prepare payment requisitions indicating the amount of withholding tax to deduct and how to account for the VAT. Regional finance processes the payments and record the transactions in JDE. Forvis Mazars follows up with vendors to ensure all tax invoices are received.

Results

The number of adjustments was reduced because the VAT and withholding tax was recorded correctly first time. With all tax invoices being received on a timely basis the very costly write off of input VAT could be eliminated. The efficiency of the new process allowed all parties to focus more on key activities rather than managing administrative and compliance processes.

Impact 

“We have used the AOS services of Forvis Mazars for more than two years,” shares our client's Regional Director, Accounting & Reporting. “I am very satisfied with their quality services and being flexible to change to meet our business needs. I really appreciate that they can arrange dedicated staffs and managers to handle our accounts and provide timely responses.”