Thai VAT: What Business Owners Need to Know
A practical guide to Value Added Tax (VAT) in Thailand — when you must register, how it works, and what your monthly obligations look like.
Value Added Tax (VAT) is a consumption tax collected at each stage of the supply chain. In Thailand, VAT is currently set at 7% (reduced from the standard 10% rate). If your business sells goods or services subject to VAT, understanding your obligations is essential.
When Must You Register for VAT?
VAT registration becomes mandatory when your business earns more than ฿1.8 million in annual revenue. You must register within 30 days of the date you exceed this threshold.
Voluntary registration is also possible before reaching the threshold. This can be useful if you sell primarily to other VAT-registered businesses, as it allows you to reclaim input VAT on your business expenses.
What Happens After Registration?
Once registered, you are required to issue tax invoices for every sale to a VAT-registered buyer. You must also collect VAT from your customers and file a monthly VAT return (PP.30) with the Revenue Department.
The filing deadline is the 15th of the following month — or the 23rd if you file electronically through the Revenue Department's e-filing system.
Your VAT liability is calculated as: Output VAT (VAT collected from customers) minus Input VAT (VAT you paid on eligible business purchases). If your output VAT exceeds your input VAT, you pay the difference. If input VAT is higher, you may request a refund or carry the credit forward.
Common VAT Mistakes to Avoid
Not issuing correct tax invoices. Tax invoices must include specific information required by the Revenue Department — missing fields can invalidate the document.
Claiming input VAT on ineligible expenses. Not all purchases qualify for input VAT recovery. Entertainment expenses, for example, are restricted.
Filing late or missing the monthly deadline. Late filing attracts penalties and surcharges.
Incorrect VAT rates. Certain goods and services are zero-rated or VAT-exempt — applying the wrong rate creates compliance risk.
Do You Need to Register?
If your business is approaching the ฿1.8 million threshold, or if you want to understand whether voluntary registration makes sense for your situation, speak with a qualified accountant. The decision depends on your customer base, expense profile, and business model.
Note: This article is for general information only and does not constitute tax or legal advice. Thai tax law changes periodically — consult a qualified accountant for advice specific to your situation.