On 16 Sep 2023, Thailand Royal Decree (No 780) was gazetted, extending the current 7% rate of VAT for another 1 year from 01 Oct 2023 to 30 Sep 2024.
This Insight has been updated for the gazetted Royal Decree (No 780).
Standard Rate VAT
The standard rate of VAT prescribed in the law is 10%, but the law permits it to be reduced by Royal Decrees, and except for a short period of time, successive Royal Decrees have been issued to lower the 10% rate. The latest Royal Decree prescribed rates for standard-rated transactions are as follows:
01 Oct 2021 to 30 Sep 2023(1)
01 Oct 2023 to 30 Sep 2024(2)
Sales of goods and services in Thailand
7%
7%
Imports of goods and services into Thailand
7%
7%
(1) As prescribed in Royal Decree (No 724) BE 2564, gazetted on 27 Aug 2021. (2) As prescribed in Royal Decree (No 780) BE 2556, gazetted on 16 Sep 2023.
Zero Rate VAT
The rate of 0% VAT applies for the following zero-rated transactions:
Exports of goods;
Exports of services (i.e. services performed in Thailand and consumed in a foreign country), see our Export Services VAT insight;
International transport services by aircraft or sea-going vessels;
Sales of goods and services to Thai government ministries, departments or state enterprises under foreign loan assistance programs;
Sales of goods and services to United Nations organizations, agencies, and foreign government embassies and consulates;
Sales of goods and services to international organizations that Thailand is obliged under agreements with organizations to treat like embassies;*
Sales of goods and services to foreign economic and trade offices that are established in Thailand under agreements with foreign governments;*
Sales of goods and services between bonded warehouses and businesses located in export processing zones or duty free zones.
* As amended by Revenue Code Amendment Act (No 49) BE 2562, gazetted on 27 Feb 2019.
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