The Value Added Tax (VAT) is a form of tax levied on the sale of goods or services at each stage of production and distribution, whether they are produced domestically or imported from abroad. According to the Revenue Code, the VAT rate is 10%, but since 2010, a royal decree has been issued to reduce and maintain the VAT rate at 6.3%, plus a tax allocated to local governments at a rate of 1 in 9 of the collected tax, totaling a VAT rate of 7%.
Entities required to pay VAT are businesses that manufacture or sell goods or services in regular business or profession, regardless of whether the business is operated in the form of an individual, a group of individuals, an ordinary partnership that is not a juristic person, or any other juristic person.
Entities required to register for VAT are as follows:
Data updated on November 28, 2020
Source: The Revenue Department, 90 Phaholyothin 7, Phayathai, Phayathai, Bangkok 10400
Tel. +66 2272 8000