Value Added Tax (VAT)

Overview of Thailand's Value-Added Tax (VAT)

Thailand's Value-Added Tax (VAT) is a consumption tax levied on the sale of goods, provision of services, and imports. VAT is administered under the Revenue Code of Thailand, overseen by the Revenue Department. 

1. Standard VAT Rate

The standard VAT rate in Thailand is 7%. This rate is applied to most goods and services. However, this rate is subject to periodic review and is sometimes adjusted by the government depending on economic conditions.

2. Zero-Rated VAT

Certain goods and services are taxed at a 0% rate, including:

• Exports of goods and services.

• International transportation services.

• Services rendered in Thailand and utilized outside of Thailand.

3. Exempt Goods and Services

Some goods and services are exempt from VAT. Examples include:

• Educational services.

• Healthcare services.

• Domestic transportation (excluding international transportation).

• Sale of unprocessed agricultural products.

4. VAT Registration

Businesses that earn more than 1.8 million THB in annual revenue are required to register for VAT with the Revenue Department. Businesses below this threshold may voluntarily register if they wish to claim VAT refunds.

5. Input VAT and Output VAT

• Output VAT: The VAT collected by a business from customers when goods or services are sold.

• Input VAT: The VAT a business pays on goods or services purchased. Businesses can deduct input VAT from output VAT to determine the net VAT payable to the Revenue Department.

6. VAT Filing and Payment

• VAT returns must be filed on a monthly basis.

• The filing deadline is the 15th of the following month.

• Late filing or payment may result in penalties or surcharges.

7. VAT on Imports

VAT is also applied to imported goods. The tax base includes the CIF value (cost, insurance, and freight), import duty, and other applicable taxes.

8. Penalties

Failure to comply with VAT regulations, such as late registration, inaccurate reporting, or non-payment, may result in fines, penalties, or criminal charges.

If you need further details or assistance regarding Thailand's VAT system, feel free to ask!

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