Consumption/VAT/Sales Tax in Thailand

Overview by
Nature of the Tax
Value Added Tax (VAT) has been implemented in Thailand since 1992 replacing Business Tax (BT). VAT is an indirect tax imposed on the value added of each stage of production and distribution.
Standard Rate
The rate is currently 7% (it is suppose to be increase to 10% in October 2010 but this sensitive measure could be postpone),
Reduced Tax Rate
Certain activities are liable to VAT at the rate of zero percent:
- export of goods;
- services rendered in Thailand and utilized outside Thailand in accordance with rule, procedure and condition prescribed by the Director-General;
- aircraft or sea-vessels engaging in international transportation;
- supply of goods and services to government agencies or state-owned enterprises;
- supply of goods and services to the United Nations and its agencies as well as embassies, consulate-general and consulates;
- supply of goods and services between bonded warehouses or between enterprises located in EPZs.
Exclusion From Taxation
Certain activities are exempted from VAT: Small entrepreneur whose annual turnover is less than 1.8 million baht; Sales and import of unprocessed agricultural products and related goods such as fertilizers, animal feeds, pesticides, etc.; Certain basic services such as healthcacre, education... For more information, you can consult Asiatradingonline website.
Method of Calculation, Declaration and Settlement
Tax base of VAT is the total value received or receivable from the supply of goods or services. Value means money, property, consideration, service fees, or any other benefits which is ascertainable in terms of money. Tax base will also include any Excise tax arises in connection with such supply. However, tax base is exclusive of the value added tax itself and does not include any discounts or allowances, but only if discounts or allowances are clearly shown in the tax invoices.
Other Consumption Taxes

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