Value Added Tax (VAT) in Thailand is charged on most sales of goods and services and on imports. This overview explains the main ideas. Rates, thresholds and deadlines change, so confirm the current position with the Revenue Department or a qualified accountant.
Rate
The standard rate set in law is 10%, but a reduced rate of 7% has been applied for many years and extended repeatedly by royal decree. Exports of goods and some services can be zero-rated, and certain supplies are exempt. Check which rate currently applies.
Registration
Businesses generally must register for VAT once annual taxable turnover passes a threshold, which has been 1.8 million baht, with some businesses allowed or required to register earlier. Confirm the current threshold.
Input and output VAT
- Output VAT is the VAT you charge customers.
- Input VAT is the VAT you pay on business purchases.
You normally pay the Revenue Department the difference between output and input VAT for the period, or carry forward or claim a refund if input exceeds output.
Tax invoices
A VAT-registered business issues a tax invoice for taxable sales. It typically shows the words "tax invoice", the seller's name, address and tax ID, the buyer's details, a running number, date, description, value and the VAT amount. Requirements vary by case, so verify them for your transactions.
Returns
VAT returns (commonly known as PP 30) are generally filed monthly for the previous month, even if no tax is due. Deadlines differ for paper and electronic filing.
How Onyx Bills helps
Onyx Bills applies a flat VAT rate to sales and purchases, keeps tax out of revenue and cost in the Profit & Loss, and provides a tax report by period. The interface is available in Thai. See billing software for Thailand and double-entry bookkeeping.
Frequently asked questions
Do I need to register for VAT if I am under the threshold?
Not necessarily, but you may choose to register in some cases. Ask your accountant.
Can I claim input VAT on every purchase?
Only on eligible purchases supported by valid tax invoices. Some expenses are not claimable.
Do I need to file when I had no sales?
Registered businesses are generally expected to file even for nil months. Confirm with your accountant.
This guide is general information, not accounting, tax or legal advice. Rules and rates change, so confirm the current position with a qualified professional.