How vat / sales tax works in Thailand
Thai VAT runs at 7% on domestic supplies of goods and services under the long-standing reduction from the 10% statutory headline, with output tax charged and input tax credited monthly.
Registration follows THB 1.8 million of annual turnover, with monthly Por Por 30 returns due by the 15th and e-filing standard for most traders.
Exports and international transport zero-rate, small businesses access simplified rhythms, and foreign e-service sellers collect through the dedicated digital regime.
Tax rates at a glance
- Standard VAT
- 7%
- Statutory headline
- 10%
- Zero-rated supplies
- 0%
- Exempt supplies
- Exempt
- Registration line
- THB 1.8m
- Foreign e-services
- 7%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
E-commerce sellersSaaS foundersManufacturersExpatsCross-border traders
Watch out for
- The 7% rate persists by decree rather than statute, so renewal risk belongs in multi-year pricing even though extensions have been routine.
- Exempt health, education, and rental supplies block input recovery, which reprices mixed contracting against taxable competitors.
- Foreign digital sellers face collection from the first baht of qualifying B2C sales, with marketplace rules layered on platform flows.
- Monthly filing by the 15th leaves no slack for growing firms, and input documentation standards deny credits on formal defects.
Frequently asked questions
What is the VAT rate in Thailand?
Thailand applies 7% VAT in 2026 under the standing reduction from the 10% statutory headline, with zero-rating for exports and exemptions for health, education, and rent.
When must a Thai business register for VAT?
Past THB 1.8 million of annual turnover, with monthly Por Por 30 returns due by the 15th. Voluntary registration suits input-heavy starters.
Do foreign digital sellers collect Thai VAT?
Yes for B2C e-services through the dedicated regime from the first qualifying sale, with marketplace collection mechanics on platform flows.