Value Added Tax (VAT) Rate in Thailand
Thailand sets the VAT rate at 10% under the Revenue Code. However, since 1997 (Asian Financial Crisis), the Cabinet issued a Royal Decree to reduce the VAT rate to 7% in order to ease the burden on the public. This reduced rate has remained in effect until the present.
Who Is Required to Register for VAT
Entrepreneurs with annual revenue from the sale of goods and services exceeding 1.8 million baht are required to apply for VAT registration within 30 days from the date their revenue exceeds this threshold.
VAT Calculation
Entrepreneurs can deduct input tax (VAT paid on purchases) from output tax (VAT collected from customers). For example:
Purchase of raw materials: 100 baht (Input VAT: 10 baht)
Sale of products: 150 baht (Output VAT: 15 baht)
VAT payable = 15 – 10 = 5 baht
Goods and Services Exempt from VAT
Certain types of goods and services are exempt from VAT, such as agricultural products, education, healthcare services, and public transportation.
*The form must be submitted online by the 23rd of the following month.
