What Is VAT in Thailand?
The current VAT rate is 7%. Thailand’s Revenue Code sets the statutory rate at 10%, but successive Royal Decrees have kept it at 7% since 1992 to support economic stability. The most recent extension, Royal Decree No. 799 B.E. 2568, confirms the 7% rate remains in effect until 30 September 2026. The rate is expected to be extended again, as it has been every year, but businesses should monitor the Revenue Department’s announcements each September.
For foreign entrepreneurs and SMEs operating in Thailand, VAT is one of the first compliance obligations to understand. Get it wrong and the penalties are steep. Get it right, and VAT registration can actually work in your favour — especially if you have significant business expenses you can offset.
Who Needs to Register for VAT?
VAT registration in Thailand is either mandatory or voluntary, depending on your revenue.
Mandatory Registration
Your business must register for VAT if:
- Your annual taxable revenue exceeds THB 1.8 million, or
- You employ foreign nationals, regardless of revenue level.
Once you cross the THB 1.8 million threshold, you have 30 days to register. Do not wait — late registration triggers fines starting at THB 300 and escalating to THB 500 after the first seven days, plus a monthly surcharge of 1.5% on unpaid tax and penalties of up to 200% of tax owed.
Voluntary Registration
Even if your revenue is below the THB 1.8 million threshold, you can register voluntarily. This makes sense if:
- You have high setup or operating costs and want to reclaim input VAT.
- Your clients are VAT-registered businesses and expect tax invoices from you.
- You are exporting goods or services and want to claim the 0% rate with full input tax credit.
Foreign Businesses Providing Digital Services
Non-resident businesses delivering electronic services (apps, software, streaming, online platforms) to non-VAT-registered Thai customers must register for VAT if their Thai revenue exceeds THB 1.8 million per year. This obligation applies regardless of where the company is incorporated. The relevant filing form is PP.36, not the standard PP.30.
Zero-Rated vs VAT-Exempt: What is the Difference?
These two categories often cause confusion. The distinction matters because it affects your ability to claim input VAT back.
| Zero-Rated (0%) | VAT-Exempt | |
| VAT charged to customer | 0% | None |
| Can claim input VAT? | Yes | No |
| Examples | Exports, international services, international transport | Basic food, education, healthcare, financial services, residential rental |
If your business involves exports or international services, zero-rating can be a significant advantage — you charge no VAT to your clients but can still recover all the VAT you paid on your Thai expenses. This requires specific documentation (bank transfer records, shipping evidence, contracts) to substantiate the 0% claim.
How to Register for VAT: Step-by-Step
VAT registration is handled through the Revenue Department using Form Por.Por.01. The process can be completed in person at your local Revenue Department office or online through the Revenue Department’s e-filing portal.
Here is what the process involves:
Step 1: Confirm eligibility
Check whether your annual taxable turnover has exceeded THB 1.8 million or will exceed it imminently. If you employ foreign nationals, you must register regardless of revenue. Voluntary registration is open to any business below the threshold.
Step 2: Gather your documents
Required documents typically include:
- Company registration certificate (DBD-issued affidavit)
- VAT application form Por.Por.01
- Passport or ID of company directors
- Lease agreement or evidence of business premises
- Map showing the location of your registered business address
- List of shareholders (company affidavit pages)
Requirements can vary slightly by Revenue Department office and business type. Having a complete file before your appointment saves significant time.
Step 3: Submit the application
Submit Por.Por.01 at the Revenue Department office covering your business address, or file online via the Revenue Department portal at rd.go.th. For businesses in Bangkok, this is typically the Area Revenue Office for your district.
Step 4: Receive your VAT certificate
Once approved, you receive a VAT registration certificate and a tax identification number for VAT purposes. You are then required to issue tax invoices for all taxable sales and to file monthly VAT returns (PP.30) from that point forward.
Monthly VAT Filing: PP.30 and the 2026 Updates
Once registered, you must file a VAT return every month — even in months with zero taxable sales. Missing six consecutive monthly filings results in automatic deregistration, forcing you to re-register from scratch.
Filing Deadlines
- Paper filing: 15th of the following month
- E-filing: 23rd of the following month (8-day extension in effect until 31 January 2027)
For example, VAT transactions from June 2026 are reported on the PP.30 return due by 15 July 2026 (paper) or 23 July 2026 (e-filing). The Revenue Department strongly encourages e-filing and the 8-day extension is a meaningful incentive.
2026 PP.30 Form Updates — Effective 1 March 2026
The Revenue Department updated the PP.30 form and its attachments with effect from 1 March 2026. If you are managing your own VAT filings, or your accountant has not yet updated their templates, this is important:
- New fields for amended filings: The revised form adds detailed input boxes for correcting overstated or understated sales and purchases, making amendments clearer and easier to audit.
- PromptPay as primary refund channel: VAT refunds are now processed via PromptPay linked to your tax identification number, replacing the previous bank transfer process for most refunds.
- Enhanced address fields: A new ‘junction’ field has been added for your principal place of business, improving address accuracy in Revenue Department records.
Businesses filing amended returns or claiming VAT refunds should ensure they are using the updated form. The old format is no longer accepted.
What You File Each Month
Your PP.30 return summarises:
- Output tax: VAT you collected from customers on sales
- Input tax: VAT you paid on business purchases and expenses
- Net VAT payable or refund due: the difference between the two
If your input tax exceeds your output tax in a given month, you can either carry the credit forward or apply for a cash refund from the Revenue Department. Refunds require supporting documentation and are subject to audit.
Costs, Penalties and What Happens If You Miss the Deadline
VAT registration itself carries no registration fee. The cost is the ongoing compliance burden: monthly filings, record-keeping, and staying current with form updates.
Late Registration Penalties
| Situation | Penalty |
| Late VAT return — within 7 days | THB 300 fine |
| Late VAT return — after 7 days | THB 500 fine |
| Surcharge on unpaid VAT | 1.5% per month of outstanding tax |
| Penalty on unpaid tax (maximum) | Up to 200% of tax owed |
| Missed 6 consecutive filings | Automatic VAT deregistration |
Record-Keeping Requirements
Thai law requires VAT-registered businesses to retain all tax invoices, VAT purchase and sale ledgers, and supporting documents for a minimum of five years. The Revenue Department conducts periodic audits and will request these records. Incomplete or disorganised records are both a compliance risk and a practical problem during audit.
Common Mistakes Foreign Businesses Make
1. Registering too late
Many SMEs do not monitor their revenue against the THB 1.8 million threshold closely enough. By the time they realise they need to register, they are already past the 30-day window and liable for penalties.
2. Missing the PP.36 obligation for imported services
If you purchase digital services or professional services from overseas providers (software subscriptions, consulting, cloud platforms), you may need to self-account for VAT on those services via Form PP.36. This is widely missed, especially by startups sourcing tools internationally.
3. Using the old PP.30 form after 1 March 2026
The Revenue Department updated the PP.30 form effective 1 March 2026. Submissions using the old form after that date are not accepted. Ensure your accountant or your internal team has updated their filing templates.
4. Misclassifying exempt vs zero-rated transactions
Treating an export as VAT-exempt (rather than zero-rated) means you cannot reclaim your input VAT — a costly error for businesses with significant Thai operating expenses. The classification affects both your cash flow and your audit exposure.
5. Neglecting withholding tax alongside VAT
VAT and withholding tax (WHT) are separate obligations, but many payments trigger both. Foreign businesses are frequently caught off-guard by WHT deductions on service payments. See Plizz’s guide to withholding tax in Thailand for a full breakdown.
How Plizz Handles VAT Registration for SMEs
Plizz manages the full VAT registration and compliance cycle for foreign-owned businesses and SMEs in Thailand. This includes:
- Assessing whether your business is ready to register (or required to)
- Preparing and filing the Por.Por.01 application with the Revenue Department
- Issuing compliant tax invoices on your behalf as part of ongoing accounting services
- Filing monthly PP.30 returns using the updated 2026 form on time, every time
- Managing input VAT claims and refund applications
- Flagging PP.36 obligations when you pay foreign service providers
Because Plizz handles accounting, payroll, and company compliance under one roof, there are no gaps between your bookkeeping records and your VAT filings. Everything ties together — which matters a great deal if the Revenue Department audits you.
Plizz is certified by the Federation of Accounting Professions of Thailand and has been working with foreign entrepreneurs and SMEs since 2015.
Ready to get your business VAT-registered? Talk to the Plizz team today.
Frequently Asked Questions
What is the VAT registration threshold in Thailand?
Businesses with annual taxable turnover exceeding THB 1.8 million must register for VAT within 30 days. Businesses below this threshold can register voluntarily. Companies that employ foreign nationals must also register regardless of revenue.
What is the current VAT rate in Thailand?
The current VAT rate is 7%. The statutory rate under the Revenue Code is 10%, but it has been reduced to 7% by Royal Decree since 1992. The latest extension (Royal Decree No. 799) keeps it at 7% until 30 September 2026.
How do I register for VAT in Thailand?
You register using Form Por.Por.01, submitted either in person at your local Revenue Department office or online via the Revenue Department’s e-filing portal. You will need your company affidavit, director identification, lease agreement, and business location map. Registration should happen before you begin taxable activities or within 30 days of crossing the THB 1.8 million threshold.
When is the deadline for filing monthly VAT returns in Thailand?
Monthly VAT returns (PP.30) are due by the 15th of the following month for paper filing. Businesses using the Revenue Department’s e-filing system have until the 23rd of the following month. The 8-day e-filing extension is currently confirmed until 31 January 2027.
What changed with the PP.30 form in 2026?
The Revenue Department updated the PP.30 VAT return form effective 1 March 2026. Key changes include new fields for amended filings, PromptPay as the primary VAT refund channel, and enhanced address details. Filings using the old form after this date are rejected.
Can a foreign-owned company register for VAT in Thailand?
Yes. VAT registration is based on taxable activity and revenue, not ownership nationality. Foreign-owned companies that meet the THB 1.8 million threshold — or employ foreign staff — must register. Non-resident businesses providing digital services to Thai consumers also have VAT obligations under the PP.36 framework.
Getting VAT Right from the Start
VAT registration in Thailand is not complicated once you understand the rules — but the ongoing compliance commitment is real. Monthly PP.30 filings, updated forms, record-keeping for five years, and the PP.36 trap for foreign service payments all add up to a meaningful workload for a small team.
The smart move for most SMEs is to set up VAT registration correctly from the beginning, alongside a proper accounting structure. That way, your bookkeeping and your VAT filings are always in sync, your input tax is captured accurately, and you are not scrambling to reconstruct records when the Revenue Department comes calling.
Plizz works with foreign entrepreneurs and SMEs across Bangkok and Thailand to handle exactly this — from initial registration through to monthly compliance. Fixed monthly pricing, no hidden fees, and a team that understands the Thai tax system from the inside.
Find out how Plizz can manage your VAT registration and monthly compliance