Thailand's standard Value Added Tax (VAT) rate is 7% (a temporary reduction from the statutory 10% rate, extended repeatedly by royal decree for over two decades and, as of 2026, still in effect). Businesses with annual revenue exceeding THB 1.8 million must register for VAT. VAT is charged on most goods and services, with certain exports zero-rated and some sectors (healthcare, education, certain agricultural products) exempt. Foreign digital service providers (e-services) supplying Thai consumers are also required to register and charge Thai VAT under the e-service VAT regime introduced in 2021.
Any foreigner setting up a Thai business — retail, consulting, e-commerce — needs to know the VAT registration threshold and rate to price correctly and stay compliant, and to know the 7% rate is not permanent by statute.
Key Facts
Standard VAT rate: 7% (reduced from the statutory 10%, renewed by royal decree; still 7% as of mid-2026).
VAT registration is mandatory once annual taxable turnover exceeds THB 1.8 million.
Exports are zero-rated (0%); certain services like healthcare, education, and small-scale agriculture are VAT-exempt.
Foreign digital/e-service providers serving Thai consumers must register for and remit Thai VAT (the e-service VAT regime, effective since September 2021).
VAT returns (PP.30) are filed monthly, by the 15th of the following month (or 23rd for e-filing).
Steps
Register for VAT — Register with the Revenue Department (Form PP.01) within 30 days of turnover exceeding THB 1.8 million, or voluntarily earlier if beneficial.
Issue tax invoices — Charge and document 7% VAT on taxable sales; issue proper tax invoices to claim input VAT credits.
File monthly VAT returns — Submit PP.30 by the 15th of the following month (paper) or 23rd (e-filing), along with net VAT payment.
Costs
Standard VAT rate: 7%
Timelines
Monthly VAT return filing (paper): by the 15th of the following month
Monthly VAT return filing (e-filing): by the 23rd of the following month
Required Documents
VAT registration certificate (Por Por 20)
Tax invoices issued and received
Monthly VAT return (PP.30) filings
Common Mistakes
Assuming the 7% rate is permanent law — it is a renewable royal-decree reduction from the statutory 10% and could revert if not extended.
Missing the mandatory registration trigger at THB 1.8 million turnover, leading to penalties and back-tax assessments.
Foreign online sellers not realizing the e-service VAT regime may require them to register even without a physical presence in Thailand.