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Thailand VAT System Explained – Guide for Businesses

VAT in Thailand

Thailand imposes a Value Added Tax (VAT) on the sale of goods and services, as well as on imports. The VAT system is administered by the Revenue Department of Thailand and follows international best practices.
Introduced in 1992, VAT replaced the old business tax and is now the primary form of indirect taxation in the country. Both domestic and foreign businesses must comply with VAT regulations if they engage in taxable activities in Thailand.

📊 VAT Rates in Thailand

Thailand currently applies the following VAT rates:

🔹 Standard Rate: 7%
(Reduced from 10%, extended through government policy)

🟢 Zero Rate (0%)
Applies to exports, international transportation, and some services rendered abroad.

🚫 Exempted Sectors
Include healthcare, education, real estate, agricultural products, and financial services.

Note: The 7% rate is a temporary reduction and may change if the government does not extend it further.

🏢 Who Must Register for VAT in Thailand?

📍 Domestic Businesses:
Any individual or company with an annual turnover exceeding THB 1.8 million must register for VAT within 30 days of reaching the threshold.

🌍 Foreign Companies:
Foreign entities providing electronic services to customers in Thailand must register for VAT under the VAT on Electronic Services (VES) regime.

📝 Voluntary Registration:
Entities below the threshold can voluntarily register to claim input tax credits.

🔢 Thai VAT Number Format

Once registered, businesses receive a 13-digit VAT ID number, which is the same as the taxpayer identification number (TIN).
Format Example: 1234567890123
This number must appear on all tax invoices and VAT filings.

🧾 VAT Invoicing Requirements

Businesses must issue a valid tax invoice for all VAT-applicable transactions. The invoice must include:
  • Invoice number and date
  • Seller and buyer names, addresses, and VAT IDs
  • Description of goods or services
  • Quantity and price
  • VAT rate and amount
  • Total payable amount
Electronic tax invoices are accepted and encouraged by the Thai Revenue Department.

🧮 VAT Calculation Example

Let’s say you sell goods worth THB 100,000:
  • VAT (7%) = THB 7,000
  • Total payable by customer = THB 107,000
This VAT must be declared and paid to the Revenue Department.

📅 VAT Return Filing in Thailand

  • 📆 Frequency: Monthly
  • ⏳ Deadline: Within the 15th of the following month
  • 🌐 Filing Method: Electronically via the Revenue Department e-Filing system
All VAT-registered businesses must submit Form VAT 30 (VAT return) even if there are no transactions during the period.

🌍 VAT on Imports and Exports

📥 Imports:
VAT at 7% is payable at customs clearance, based on the CIF (cost, insurance, freight) value.

📤 Exports:
Exports are zero-rated, meaning no VAT is charged to the buyer, but input tax credits can be claimed.

💻 VAT on Digital Services (VES System)

As of September 2021, foreign digital service providers and online platforms that earn over THB 1.8 million annually from Thai consumers must:
  • Register for VAT via the VES portal
  • Charge 7% VAT on digital services
  • File monthly returns without the right to deduct input tax

Examples of taxable services:
  • Streaming platforms
  • Online gaming
  • Digital advertising
  • Software downloads
  • E-learning

🚫 VAT-Exempt Goods and Services

Common VAT-exempt items in Thailand include:
  • Education services
  • Medical and dental services
  • Public transportation
  • Religious and cultural services
  • Residential property rentals
  • Agricultural products (rice, vegetables, meat)

✅ VAT Compliance Checklist

  • ✔ Register for VAT if required
  • ✔ Issue correct tax invoices for every taxable transaction
  • ✔ File monthly VAT returns on time via e-Filing
  • ✔ Keep tax records for at least 5 years
  • ✔ Separate zero-rated, exempt, and standard-rated sales correctly
  • ✔ For foreign digital providers, register and file under the VES regime
Thailand’s VAT system is structured and increasingly digitized. Whether you're a local enterprise or a foreign digital provider, understanding the Thai VAT landscape is critical for tax compliance and smooth business operations.

👉 Use our free Thailand VAT Calculator at GSTCal.org to simplify your VAT calculations and ensure accuracy with VAT rate!