A complete guide to Value Added Tax (VAT) in Thailand

Understanding what is VAT in Thailand is essential for any business operating in the Kingdom. Value Added Tax is an indirect tax applied at each stage of production and distribution, collected on the sale of goods and services. The VAT Thailand system was introduced in 1992, replacing the former Business Tax and becoming a cornerstone of the country's tax framework

How Much Is VAT in Thailand?

If you're wondering how much is VAT in Thailand, the current rate stands at 7%. Whilst the Revenue Code prescribes a standard rate of 10%, successive Royal Decrees have maintained the reduced 7% rate to support economic stability. The latest extension under Royal Decree No. 799 confirms the Thailand VAT rate of 7% will remain in effect until 30 September 2026.

VAT is calculated using a straightforward formula: VAT Liability = Output Tax – Input Tax.

The VAT paid on purchases (input VAT) is offset against VAT collected on sales (output VAT). Should input VAT exceed output VAT, businesses may claim a refund from the Revenue Department, either as cash or as a credit against future liabilities.

Who Must Register for VAT?

Any person or entity regularly supplying goods or services in Thailand with an annual turnover exceeding THB 1.8 million must register for VAT. Registration requires submission of Form VAT 01 before commencing business operations or within 30 days of exceeding the threshold.

Importers are also subject to VAT, collected by the Customs Department at the point of entry. Services provided overseas but utilised in Thailand trigger reverse charge obligations, requiring recipients to file Form PP 36 and remit VAT directly to the Revenue Department.

Tax Invoice Requirements

VAT-registered businesses must issue tax invoices containing the following elements:

The words “tax invoice” in a prominent place.
The name, address and taxpayer identification number of the VAT registrant issuing the tax invoice.
The name and address of the purchaser of the goods or service.
Serial number of tax invoice.
Description, type, category, quantity and value of goods or services.
The amount of VAT calculated on the value of goods or services is clearly separated from the value of goods or services.
The date of issuance.
Tax identification number of the purchaser of the goods or services.
The wording “Head Office” or “Branch No. …” which is the seller’s place of business from which such tax invoice, debit or credit note is issued.
The wording “Head Office” or “Branch No. ….” which is the purchaser’s place of business to which such goods or services are sold or provided.

Invoices raised in currencies other than Thai Baht require the presentation of both currencies on the face of the invoice and must indicate the exchange rate used in the conversion. It is the amount in Thai Baht that is reported to the Revenue Department.

Provision of services

Generally, an invoice is issued to request payment for the service, and then a tax invoice is issued on receipt of payment, which is the tax point for VAT purposes.

Imports and Exports

The export of both goods and services rendered in Thailand but wholly consumed overseas has a VAT rate of 0%.

When importing goods, VAT is due and payable to the Customs Department during the import process. From 1 March 2020, the import of goods to be used for the treatment, prevention and research and development of Covid-19 is exempt from VAT.

When payments are made overseas for services provided, this would be regarded as an import of services and VAT would apply on a reverse charge basis. Accordingly, the recipient of the service would be required to make a voluntary payment to the Revenue Department along with the filing of VAT return form PP 36.

Zero-Rated and Exempt Activities

Certain transactions qualify for a 0% Thailand VAT rate, including:

Exported goods
Services rendered in Thailand but consumed entirely overseas
International transport by aircraft or sea-going vessels
Sales between bonded warehouses or enterprises in duty-free zones

VAT Thailand exemptions apply to the following:

Small businesses with annual turnover below THB 1.8 million
Educational services (government and private institutions)
Healthcare services (hospitals and clinics)
Domestic transportation
Rental of immovable properties
Professional services such as medical and auditing work
Unprocessed agricultural products, fertilisers and animal feeds
Newspapers, magazines and textbooks

	Type of services or goods	Tax rate (%)
1.	Sale of goods or provision of services or import of goods / services	7
2.	1. Exported goods 2. Services provided in Thailand but wholly consumed overseas 3. International transport services by aircraft or sea-going vessel 4. Sales of goods or services between bonded warehouses or between enterprises located in a duty free zone	0
3.	Tax payer with total annual sales of less than 1.8 million Baht	Exempt
4.	1. Educational services including government and private school 2. Audit services 3. Medical services 4. Health care services including government and private hospitals and clinics 5. Domestic transportation 6. Renting of immovable properties	Exempt
5.	Imported goods which qualify for exemptions (e.g. brought into a duty free zone).	Exempt

Filing Deadlines and Penalties

VAT returns in Thailand must be submitted monthly. For example, a tax invoice dated 25th July 2025 will be included on the VAT return submitted to the RD by the 15th August 2025.

The Revenue Department has announced that companies registered for e-filing have an extra eight days to file all tax returns.

Form	Purpose	Deadline
PP 30	Standard VAT return	15th of the following month
PP 36	Imported services (reverse charge)	7th of the following month
E-filing	All returns	Additional 8 days extension

Penalties For Non-Compliance Include:

Late submission fine: up to THB 2,000
Late payment penalty: up to twice the tax due
Monthly surcharge: 1.5% on outstanding amounts

Frequently Asked Questions

What is VAT in Thailand and how does it work?

VAT in Thailand is an indirect consumption tax applied at 7% on the value added at each stage of production and distribution. Businesses collect VAT from customers on sales (output tax) and offset this against VAT paid on purchases (input tax), remitting the difference to the Revenue Department.

How much is VAT in Thailand currently?

The current VAT rate in Thailand is 7%, reduced from the statutory 10% rate. This reduced rate has been continuously extended by Royal Decree and remains effective until 30 September 2026.

What is the registration threshold for VAT in Thailand?

Businesses with annual turnover exceeding THB 1.8 million must register for VAT within 30 days of reaching this threshold. Smaller businesses may register voluntarily if beneficial for their operations.

Which goods and services are exempt from VAT in Thailand?

Exempt categories include healthcare and educational services, domestic transportation, rental of immovable properties, unprocessed agricultural products, newspapers and textbooks, and professional services such as medical and auditing work.

When are VAT returns due in Thailand?

Monthly VAT returns (Form PP 30) must be filed by the 15th of the following month. E-filing users receive an extension until the 23rd. Form PP 36 for imported services is due by the 7th of the following month.

Can I claim a VAT refund in Thailand?

Yes. If input tax exceeds output tax in any month, businesses may claim a refund in cash or as a credit against future VAT liabilities. Zero-rated businesses are always entitled to input tax refunds.

What penalties apply for late VAT filing in Thailand?

Late submissions incur fines of up to THB 2,000, with penalties of up to twice the tax payable plus a monthly surcharge of 1.5% on unpaid amounts.

Further sources of information

The Revenue Department website:

http://www.rd.go.th/publish/6043.0.html