Do I Need to Pay VAT (Value Added Tax)
What is the VAT Rate in Thailand?
If you are planning to start a business in Thailand, understanding the Value Added Tax (VAT) system is essential to ensure proper compliance and avoid unexpected penalties.
Here’s what you need to know about VAT in Thailand, including who needs to pay VAT and the current VAT rate.
✅ 1. Who Needs to Register and Pay VAT in Thailand?
Businesses must register for VAT in Thailand if:
- Annual revenue exceeds 1.8 million THB (approximately USD 50,000).
- You engage in trading, manufacturing, services, or other business activities subject to VAT.
- You import goods or services into Thailand, regardless of revenue level (for certain cases).
💡 Note: Some businesses choose to register for VAT voluntarily even if their revenue is below the threshold, to claim input tax credits and enhance credibility.
✅ 2. What is the VAT Rate in Thailand?
The standard VAT rate in Thailand is:
📊 7% (Current Rate Mach, 2025)
This rate applies to most goods and services sold or used in Thailand.
Example of VAT Rate Application:
| Type of Transaction | VAT Rate |
|---|---|
| Sale of goods and services within Thailand | 7% |
| Import of goods into Thailand | 7% |
| Export of goods | 0% (Zero-rated) |
✅ 3. Are There Any VAT Exemptions?
Certain types of businesses and goods/services are exempt from VAT, including:
- Educational services.
- Healthcare and medical services.
- Sales of agricultural products in raw form.
- Domestic transportation services (land).
💡 Note: VAT exemption means you do not charge VAT on sales, but you cannot claim input VAT credits on purchases.
✅ 4. What Are VAT Filing Requirements?
- VAT returns must be filed monthly (Form PP.30).
- VAT payments are due by the 15th of the following month.
- VAT invoices must be issued properly to customers.
🎯 Summary Table: VAT in Thailand
| Topic | Details |
|---|---|
| VAT Rate | 7% (Standard Rate) |
| Registration Threshold | 1.8 million THB annual revenue |
| Zero-rated (0%) VAT | Export of goods, international services |
| Exempt from VAT | Education, healthcare, raw agriculture, domestic land transport |
| Filing Frequency | Monthly (PP.30 Form) |
| Payment Deadline | By the 15th of the following month |
💼 How BRW Can Help You with VAT in Thailand
At BRW – Boonrawee Co., Ltd., we offer professional VAT advisory and compliance services to help your business:
- Register for VAT properly and efficiently.
- Handle monthly VAT filings and payments.
- Ensure correct VAT invoice issuance and record-keeping.
- Advise on VAT exemptions and zero-rated transactions to optimize your tax.
📞 Contact BRW today for expert assistance on VAT and all your tax compliance needs!
