Thailand is an excellent country to buy and sell gold because the transaction costs are cheap while still maintaining high purity. There are two main reasons why buying gold in Thailand saves money - lower overhead costs and VAT refund.
1) Lower overhead costs
Excluding tax, any purchase of gold in Thailand will include commission fees paid to
the shop, and potentially labor charges for molding it into a necklace, ring or bracelet.
The commissions in Thailand are low, due to the lower cost of living. Renting a shop
and paying wages is cheaper compared to other counties, and this contributes to a lower
cost of transaction for customers.
2) VAT refund
VAT (value added tax) is a 7% sales tax applied to all goods sold within Thailand.
Any non-Thai tourist can buy gold at a shop in Thailand and then claim a refund to receive
this 7% VAT back! Simply tell the shop you want a VAT refund and they will help you
fill out the VAT form. Then when you are leaving Thailand, go to the VAT office at the
airport before your flight and present your VAT form to receive your VAT refund in cash!