Businesses Eligible for VAT Registration Exemption

     Value Added Tax (VAT) is a tax collected from the sale of goods or services at each stage of production and distribution, both domestically produced and imported. Currently, VAT is charged at a rate of 7% on the value of sales and transactions.

However, the Revenue Department has exempted certain businesses from having to register for VAT, including:

1. Businesses with income from the sale of goods or services not exceeding 1.8 million baht per year.
2. Businesses that sell goods or services that are exempt from VAT according to the law.
3. Businesses providing services from abroad which are consumed within the kingdom.
4. Businesses located outside the kingdom that occasionally conduct the sale of goods or services within the kingdom, as per the guidelines, procedures, and conditions set in the Director-General's Notification of the Revenue Department regarding VAT (Issue 43) dated January 29, 1993.
5. Other businesses as determined by the Director-General when deemed appropriate.

In addition, there are businesses that are exempt from VAT by law, but have the right to apply for VAT registration, including:

1. Businesses selling agricultural produce, livestock (whether alive or not), fertilizers, crushed fish, animal food, medicine or chemicals for plants or animals, newspapers, magazines, or textbooks.
2. Businesses selling goods or providing services not exempted from VAT under the law, with income not exceeding 1.8 million baht per year.
3. Domestic airport transportation services.
4. Export businesses located in export industrial zones according to the Thai Industrial Estates Law.
5. Businesses providing fuel pipeline transportation services within the kingdom.

     Businesses wishing to exercise their right to apply for VAT registration must submit a request using Form Por Por 01.1 (one set, three copies) along with the VAT registration application form Por Por 0.

Data updated on August 04, 2022

Source: The Revenue Department, 90 Phaholyothin 7, Phayathai, Phayathai, Bangkok 10400

Tel. +66 2272 8000

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