Thailand VAT (Value Added Tax): Scope, Rates, Registration and Filing

In short
Under the Revenue Code, entrepreneurs who sell goods or provide services in Thailand, as well as importers of goods, are liable to pay value added tax (VAT) (Sections 77/2, 82). The standard rate set by the Revenue Code is 10% (Section 80), currently reduced to 7% by Royal Decree; exports and similar transactions are 0% (Section 80/1). A business whose annual turnover reaches THB 1.8 million must register for VAT. An entrepreneur must complete VAT registration before commencing business or within the prescribed period (Sections 85, 85/1), issue tax invoices (Section 86) and file returns as required.

1. What is subject to VAT (Section 77/2)

An entrepreneur who sells goods or provides services within Thailand; and the import of goods.

2. Tax rates

Standard rate 10% Section 80

The Revenue Code sets the standard VAT rate at 10%; currently reduced to 7% by Royal Decree (the reduction is prescribed by Royal Decree and periodically renewed).

Zero rate 0% Section 80/1

Exports of goods and similar transactions are subject to the 0% zero rate.

3. Exemptions (Sections 81, 81/1)

Certain businesses are exempt from VAT (such as agricultural produce, Section 81); small businesses are exempt from VAT (Section 81/1) — the current VAT registration threshold is annual turnover of THB 1.8 million, and a business reaching it must register (this threshold is prescribed by Royal Decree).

4. Registration, tax invoices and reports

  • Persons liable: operators and importers (Section 82).
  • Registration: an entrepreneur about to commence business may register before commencing; an entrepreneur already in business must register within the prescribed period (Sections 85, 85/1).
  • Tax invoices: a tax invoice must be issued for every sale/service (Section 86), stating the prescribed particulars (Section 86/4).
  • Reports and retention: sales tax, purchase tax and goods/inventory reports must be prepared (Section 87) and retained as prescribed (Section 87/3).

5. Penalties

Operating a business without VAT registration, underpayment and the like are subject to a penalty under Section 89; for serious cases such as issuing a tax invoice without authority or forging one, the punishment may be imprisonment of three months to seven years together with a fine (Section 90/4).

💡 Current rate and registration threshold

Section 80 of the Revenue Code sets the standard rate at 10%; the current effective rate is 7% and the VAT registration threshold is annual turnover of THB 1.8 million — both are prescribed by Royal Decree and may change, so please refer to the Revenue Department's latest announcements.

FAQ

What is the VAT rate in Thailand?

The Revenue Code sets the standard rate at 10% (Section 80), with 0% for exports (Section 80/1); it is currently reduced to 7% by Royal Decree (periodically renewed), so please refer to the Revenue Department's latest announcements.

What turnover requires VAT registration?

Small businesses are exempt from VAT (Section 81/1); the current VAT registration threshold is annual turnover of THB 1.8 million, and once you reach it you must register (this threshold is prescribed by Royal Decree and may change).

Do exports have to pay VAT?

Exports of goods are subject to the 0% zero rate (Section 80/1).

Do I need to issue tax invoices and reports for VAT?

Yes. A tax invoice must be issued for every sale/service (Sections 86, 86/4), and sales tax/purchase tax/goods and inventory reports must be prepared and retained (Sections 87, 87/3).