Value Added Tax (VAT)
The “Value Added Tax (‘VAT’) is a tax on the sale of goods or the provision of services. The current rates are 7% and 0% (on export activities for instance) while some exemptions apply to certain activities.
This tax applies to companies having a yearly accumulated turnover exceeding 1.8 million baht. However, companies willing to hire foreign workers should preliminary register to VAT disregards of their accumulated turnover.
Failing to declare your VAT may induce high penalties.
Activities subject to VAT 0%
| Export of goods. | |
| Services rendered in Thailand but consumed abroad. | |
| International air & sea transportation services. |
Activities subject to VAT exemption
| Juristic entities with an annual turnover lower than 1.8 million baht. | |
| Sales & import of specific products. (books & magazines, unprocessed agricultural products, etc…) | |
| Professional services such as medical, audit and regulated legal services. | |
| Services provided by Thai governmental organizations. | |
| Land transportation. | |
| Educational services provided by recognized schools. | |
| Cultural services. (museums, …) | |
| Rent of immovable properties. (real estate) | |
| Religious, charitable services. |
