Last update: August 13, 2023
Join our Linkedin Group on ”VAT Rates – Legislative changes”, click HERE
Quick overview
| Standard Rate | Reduced Rate | Other Rates |
| 7% | N/A | 0%, Exempt |
There are basically 1 VAT rates in Thailand of 7%
Recent developments
For more information about (recent) rate change developments in Thailand, please click HERE.
The VAT rate of 7% will apply until 30 September 2023, unless further extension of reduction is announced. If not, 10% VAT will be applied afterward.
Standard rate: 7%
This rate applies for all transactions that take place in Thailand, unless an exception applies (such as a reduced rate, the zero rate or an exemption, or a reason to treat the transaction as outside scope of VAT).
Zero rate (0%)
Examples of goods and services taxable at 0%
- Export of goods to foreign countries and customs free zone in Thailand
- Export of services, i.e., services performed in Thailand must be used in a foreign country, such as R&D that results in services used in foreign country. If the services are partially used in Thailand, the part of the services used in Thailand (if can be segregated) is subject to VAT at a rate of 7%
- International transport services by aircraft or seagoing vessels
- Sale of goods and provision of services to United Nations Organization, an embassy, legation, consulate-general or consulate
- Sale of goods and provision of service between bonded warehouse and the other bonded ware-house between the supplier who carries on the business in free zone
Examples of exempt supplies of goods and services
The term “exempt supplies” refers to supplies of goods and services that are not liable to VAT and that do not qualify for input tax deduction.
- Sale of agriculture products, animals and animal products (except canned foods)
- Sales of fertilizers, drugs or chemicals for caring for plants or animals, and insecticides or pesticides for plants or animals
- Sales of ground fishmeal and animal feeds
- Sales of newspapers, periodicals and textbooks
- Rendering of services in the fields of medicine, auditing or litigation
- Hospital services
- Domestic transportation of all types and international transportation by land
- Leasing of immovable property
- Business subject to specific business tax (SBT)
Option to tax for exempt supplies. Operators of the following VAT exempted businesses are entitled to register for VAT:
- • Sale of goods not for export or provision of services as follows:
– Sale of agricultural products
– Sale of animals
– Sale fertilizers
– Sale of fish meals, animal feeds
– Sale of drugs and chemical products for plants and animals
– Sale of newspapers, magazines or textbooks - Provision of domestic transport by aircraft
- Export of goods as the trader in the export processing zone under the laws governing industrial estate of Thailand
- Provision of the service of transporting fuel oils through pipes in Thailand
- Business with the value of tax base not exceeding the value of the tax base for a small business fixed by Royal Decree
- A global VAT/GST rate overview can be found here (note this is a work in progress).
