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 collected or collectible by VAT registered person from his customers when goods or services are supplied.
- “Input Tax” is a tax charged by another registered person on any purchase of goods or provision of services. Imported goods taxes are included.
If input tax exceeds output tax each month, taxpayers can claim a cash or tax credit refund for future use. Refunds can be claimed within 3 years of filing.
VAT Forms to Submit to Government
- Any person or entity who is liable to VAT in Thailand must register to be VAT registered person or entity. The registration must be before the operation of the business or within 30 days after its income reaches the threshold of 1.8 million Baht. (Form VAT PorPor 01) (Free download for translation purpose only) is the application for VAT registration submitted to Bangkok or other Area Revenue Branch Offices.
- VAT return must be filed on a monthly basis. VAT return (Form VAT PorPor 30) (Free download for translation purpose only) and any tax payment must be submitted to the Area Revenue Branch Office within 15 days of the following month.
- Service providers from other countries must pay VAT in Thailand. In such a case, service recipient in Thailand is obliged to file VAT return (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.