Does my company need to be VAT registered?
Compulsory VAT registration is required if your company turnover exceeds Baht 1.8 million per annum. Failure to register on time may incur penalties and surcharges for late registration. However, if your company is only selling goods or services that are exempt from VAT, your company is not required to register for VAT.
Voluntarily registration for VAT
Even if your company turnover does not exceed the threshold or if your company is selling certain goods that are exempt from VAT, you may voluntarily register for VAT. The advantage of this is that if your local customers are also VAT registered, the VAT they charge you, can be recovered. Also businesses can be better off registered as they may be entitled to refunds of VAT paid when importing goods and raw materials into Thailand.
Voluntarily registration for VAT
Even if your company turnover does not exceed the threshold or if your company is selling certain goods that are exempt from VAT, you may voluntarily register for VAT. The advantage of this is that if your local customers are also VAT registered, the VAT they charge you, can be recovered. Also businesses can be better off registered as they may be entitled to refunds of VAT paid when importing goods and raw materials into Thailand.