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Thailand VAT Guide (ภาษีมูลค่าเพิ่ม)

Thailand's VAT (ภาษีมูลค่าเพิ่ม, VAT) system applies a standard rate of 7% — the statutory 10% rate has been temporarily reduced to 7% since 1997, renewed annually. Exports are zero-rated; certain services (education, healthcare, finance) are exempt. Businesses with annual turnover exceeding THB 1.8 million must register. E-tax filing and electronic invoicing are increasingly mandated. All amounts in THB.

Thailand's VAT (ภาษีมูลค่าเพิ่ม) is governed by the Revenue Code and administered by the Revenue Department (กรมสรรพากร). The 7% rate is among the lowest in Southeast Asia. For related guidance, see our Corporate Tax Guide → and Personal Tax Guide →.

VAT Rates (2026)

  • Standard rate — 7%: Applies to most goods and services (statutory rate is 10%, but has been reduced to 7% by Royal Decree since 1997, renewed annually). This rate applies to domestic sales of goods and services by VAT-registered businesses.
  • Zero-rated (0%): Exports of goods and services, international transport, goods sold to duty-free zones, and services performed abroad. Zero-rated supplies allow full input VAT recovery.
  • Exempt (ไม่ต้องเสียภาษีมูลค่าเพิ่ม): Certain supplies are VAT-exempt, meaning no VAT is charged and no input VAT recovery is permitted. Exempt categories include: basic foodstuffs (unprocessed agricultural products), educational services, healthcare services, rental of immovable property (unless the landlord elects VAT), insurance, banking and financial services (interest, lending, foreign exchange), and religious/charitable activities.
  • Specific Business Tax (SBT): Certain businesses that are VAT-exempt (banking, insurance, pawnshops, and certain financial services) instead pay Specific Business Tax at rates between 0.1% and 3% of gross revenue (plus local tax). See the Property Tax Guide for SBT on property sales.

VAT Registration

  • Registration threshold: Any person (individual or legal entity) conducting business in Thailand with annual turnover exceeding THB 1.8 million must register for VAT within 30 days of reaching the threshold.
  • Voluntary registration: Businesses below THB 1.8 million may register voluntarily. This is beneficial if they have significant input VAT (purchases) relative to output VAT (sales), as they can claim refunds.
  • Foreign businesses: Non-resident companies providing electronic services (e-services) to non-VAT-registered Thai customers (B2C) must register for VAT under the e-Service regime. Foreign businesses selling goods to Thai consumers via online platforms may also have registration obligations.

Filing and Payment

  • Filing frequency: Monthly VAT returns (PP.30) must be filed by the 15th of the following month. For example, January's return is due by 15 February.
  • E-filing: All VAT returns must be filed electronically through the Revenue Department's online portal. Paper filing is no longer accepted for registered businesses.
  • Input VAT recovery: Registered businesses can credit input VAT (VAT paid on purchases, imports, and expenses) against output VAT (VAT collected on sales). Excess credits are generally refundable, with refunds processed within 2–3 months.
  • Withholding VAT: Certain payments (e.g., services from non-residents, government payments) require the payer to withhold VAT at 7% and remit it to the Revenue Department.
  • Penalties: Late filing — up to THB 2,000 plus 1.5% per month on the tax due. Late payment — 1.5% per month. Incorrect returns may attract a surcharge of 20–100% of the underpaid tax.

E-Tax System and Electronic Invoicing

  • e-Tax Invoice: Thailand has adopted electronic tax invoices (e-Tax Invoice) as the standard. Businesses must issue e-Tax Invoices and e-Receipts through the Revenue Department's approved system.
  • e-Withholding Tax: Electronic withholding tax certificates (e-Withholding Tax) are mandatory for most payments. The payer generates a digital certificate and submits it to the Revenue Department.
  • e-Filing: The Revenue Department's online platform supports automatic data population from e-Tax Invoices and e-Withholding Tax, reducing manual entry errors.
  • Penalty relief: The government periodically offers penalty relief campaigns to encourage compliance with the e-tax system.