Value added tax (VAT) in Thailand
Rates, registration, exemptions, monthly filing and penalties, in plain English.
Value added tax (VAT) in Thailand is a tax on the sale of goods and the provision of services. The rate is 7%, a reduced rate that the government has extended to 30 September 2027 (the statutory rate in the Revenue Code is 10%). Exports are taxed at 0%, and some activities are exempt.
A business must register for VAT within 30 days of its annual turnover exceeding THB 1.8 million. Companies that plan to hire foreign employees usually register earlier, whatever their turnover, because work permit applications generally require a VAT-registered employer.
Late or missing VAT returns lead to fines, penalties and monthly surcharges, explained at the end of this page.
Activities exempt from VAT
- Businesses with annual turnover of THB 1.8 million or less (they may register voluntarily).
- Sale and import of certain goods, such as books, newspapers and unprocessed agricultural products.
- Professional services such as medical, audit and licensed legal services.
- Services provided by Thai government bodies.
- Domestic land transport.
- Educational services provided by recognized schools.
- Cultural services, such as museums.
- Rental of immovable property (real estate).
- Religious and charitable services.
Activities taxed at 0% VAT
- Export of goods.
- Services performed in Thailand and used abroad.
- International air and sea transport services.
Monthly VAT filing
VAT returns are filed every month, for the sales and purchases of the previous month, by these deadlines:
- PP 36, VAT on services bought from abroad: by the 7th of the following month
- PP 30, the monthly VAT return: by the 15th of the following month
Returns filed online through the Revenue Department (RD) e-filing system get 8 extra days: the 15th for PP 36 and the 23rd for PP 30.
Late filing
The RD charges a fine for late VAT returns (THB 300 if filed within 7 days of the deadline, THB 500 after that), a penalty of up to 200% of the tax due, and a surcharge of 1.5% per month on the tax due.
