VALUE ADDED TAX (“VAT”) IN THAILAND

VAT in Thailand is an indirect tax imposed on the value added of each stage of production and distribution. Thailand applies VAT to any entity with a turnover over 1.8 million baht that regularly supplies goods or services.

The VAT rate in Thailand is 7%, and VAT-registered entities must issue tax invoices for every transaction, detailing the goods and services sold and the VAT due. VAT-exempt activities include small businesses under 1.8 million baht.

Click here for additional information regarding VAT calculation, tax exemption, and VAT tax point.

“VAT LIABILITY” is an amount that output tax exceed input tax. 

• “Output Tax” is a tax that a VAT-registered person collects from customers when they supply goods or services.
• “Input Tax” is a tax that another registered person charges on any goods or services a VAT-registered person purchases. This includes taxes on imported goods.
• If your input tax exceeds your output tax each month, you can claim a cash refund or a tax credit for future use.
  You can claim refunds within 3 years of filing.

VAT Forms to Submit to Government

• Any person or entity liable for VAT in Thailand must register as a VAT-registered person or entity. You must complete registration before starting operations or within 30 days after your income exceeds 1.8 million Baht. Use  (Form VAT PorPor 01) (Free download for translation purpose only) to apply and submit it to the Bangkok or Area Revenue Branch Offices.

• VAT return must be filed on a monthly basis. Submit VAT return (Form VAT PorPor 30) (Free download for translation purpose only)   and pay any tax due to the Area Revenue Branch Office within 15 days of the following month.

• If you are a service recipient in Thailand and receive services from foreign providers, you must file the VAT return. Use (Form VAT PorPor 36) (Free download for translation purpose only) and pay tax, if any, on behalf of the service providers.

Fines and Surcharges

The fine for late submission is 300 baht within the first 7 days. It increases to 500 baht after 7 days. The penalty for late VAT submission can be twice the tax due. There is also a 1.5% surcharge on the tax payable per month.

Under Thai law, companies operating in Thailand must submit an annual report. Various taxes apply, including Corporate Income Tax, VAT, and Specific Business Tax.

FOR FURTHER INFORMATION : Please visit the Revenue Department website.

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