Thailand VAT Registration: Threshold, Process and Form PP01
1. Who is liable for VAT (Section 82)
Under the value added tax Chapter of the Revenue Code, two categories of persons are liable to pay value added tax (Section 82):
- Operators: persons selling goods or providing services in Thailand.
- Importers: persons importing goods.
Any operator that is liable to VAT must register for value added tax as required by law and comply with the post-registration duties of issuing tax invoices and filing returns.
2. Mandatory registration threshold and time limit (Section 85/1)
An operator already carrying on business whose turnover (tax base) exceeds the “small business” threshold prescribed by Royal Decree issued under Section 81/1 must submit an application for value added tax registration within 30 days of the date on which the threshold is exceeded (Section 85/1).
The specific amount of the threshold is prescribed by Royal Decree; our firm confirms that the current mandatory registration threshold is annual turnover of THB 1.8 million. Reaching or exceeding this amount triggers the registration obligation.
3. How to apply: Form PP01 and where to file (Section 85)
An operator that has not yet commenced business has the right to submit an application for value added tax registration before the day of commencing business (Section 85). The application must use the form prescribed by the Director-General — namely the value added tax registration application form PP01 (ภ.พ.01) — and be submitted at the Area Revenue Branch Office for the district where the place of business is located; where there are multiple places of business, it is submitted at the Area Revenue Branch Office for the district where the head office is located.
An operator formally becomes a registered operator from the date stated on the value added tax registration certificate (Section 85).
Pre-opening registration Proactive
An operator about to commence selling goods or providing services may apply proactively before the day of commencing business (Section 85).
Threshold registration Mandatory
An operator already in business whose turnover exceeds the threshold must apply within 30 days of the date the threshold is exceeded (Section 85/1).
Voluntary registration Optional
An operator carrying on VAT-exempt or small-scale business has the right to apply to the Director-General for registration and to compute tax under Section 82/3 (Section 81/3).
4. Voluntary registration (Section 81/3)
Even if the mandatory threshold is not reached, an operator carrying on VAT-exempt business or qualifying as a small business still has the right to apply to the Director-General of the Revenue Department, in the form prescribed by the Director-General, for value added tax registration and to pay value added tax under this Chapter, with the tax computed under Section 82/3 (Section 81/3). After voluntary registration, the operator may not unilaterally cease paying value added tax unless it applies for cancellation as provided by law and obtains the Director-General’s approval.
5. Post-registration duty: issuing tax invoices (Section 86)
After becoming a registered operator, for every sale of goods or provision of services the operator must prepare a tax invoice and a copy of it, issuing it immediately when the liability to pay value added tax arises (Section 77/1) and delivering it to the purchaser; the copy of the tax invoice must be kept in accordance with Section 87/3 (Section 86). In addition, value added tax must be filed and paid as required (the specific filing and payment procedures are subject to the official regulations, which our firm can help confirm).
Whether the mandatory registration threshold has been reached, whether to opt for voluntary registration, and the completion of Form PP01 and its accompanying documents must be confirmed case by case in light of the company’s actual circumstances — our firm provides corporate VAT registration services and can help assess the threshold and prepare and file the PP01 application.
FAQ
When must a Thai business register for VAT?
An operator already in business whose turnover exceeds the threshold prescribed by Royal Decree issued under Section 81/1 must apply for value added tax registration within 30 days of the date the threshold is exceeded (Section 85/1); our firm confirms that the current mandatory threshold is annual turnover of THB 1.8 million. An operator that has not yet commenced business may also register before the day of commencing business (Section 85).
Who has to pay VAT in Thailand, and what is the rate?
The persons liable to pay value added tax are operators (those selling goods or providing services) and importers (Section 82). The standard rate of value added tax is 7%.
Can you register for VAT voluntarily if you are below the threshold?
Yes. An operator carrying on VAT-exempt business or qualifying as a small business has the right to apply to the Director-General of the Revenue Department, in the form prescribed by the Director-General, for value added tax registration, with the tax computed under Section 82/3 (Section 81/3). After registration, the operator may not unilaterally cease paying unless it applies for cancellation as provided by law and obtains the Director-General’s approval.
What form does VAT registration require, and what are the duties after registration?
You must use the value added tax registration application form PP01 (ภ.พ.01), submitted at the Area Revenue Branch Office for the district where the place of business is located (Section 85). After becoming a registered operator, for every sale or service you must issue a tax invoice and deliver it to the purchaser, keeping the copy in accordance with Section 87/3 (Section 86), and file and pay value added tax as required.