Thailand's VAT registration

Last updated: 9 Aug 2023 | 1061 Views |

Value Added Tax (VAT)

has been implemented in Thailand since 1992 replacing Business Tax (BT). VAT is an indirect tax imposed on the value added of each stage of production and distribution.

Any person or entity who regularly supplies goods or provides services in Thailand and has an annual income exceeding THB 1.8 million is subject to VAT in Thailand. This also apply to services that are deemed to be rendered or utilized in Thailand regardless the origin or where those services have been created.

Whereas, the government has been more emphasizing on cross boarder provider using internet or other network technology as the mediem to deliver its services to the end users in Thailand. Those service providers must also follow Thailand's VAT regulations.

Exemptions

Small entrepreneur whose annual turnover is less than 1.8 million baht;
Sales and import of unprocessed agricultural products and related goods such as fertilizers, animal feeds, pesticides, etc.;
Sales and import of newspapers, magazines, and textbooks;
Certain basic services such as:
- domestic transportation and international transportation by way of land;
- healthcare services provided by government and private hospitals as well as clinics;
- educational services provided by government and private schools and other recognized educational institutions;
Professional services such as:
- medical services;
- auditing services;
- lawyer services in court; and
- other similar professional services that have laws regulating such professions.
income from business, commerce, agriculture, industry, transport or any other activity not specified earlier.
Cultural services such as:
- amateur sports, services of libraries, museums, zoos;
Services in the nature of employment of labour, research and technical services and services of public entertainers;
Goods exempted from import duties under the Industrial Estate law imported into an Export Processing Zones (EPZs) and under Chapter 4 of the Customs Tariff Act;
Imported goods that are kept under the supervision of the Customs Department which will be re-exported and be entitled to a refund for import duties; and
Other services such as religious and charitable services, services of government agencies and local authorities.

VAT rate in Thailand

The normal VAT rate in Thailand has been specified at 10%. However, it has been reduced by cabinet to 7% whereas this reduced rate shall be reconsidered by the cabinet every year.

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