On 18 July 2022, Thailand tax Royal Decree (No 755) was gazetted, extending the value added tax concession for the importation and donation of Covid-19 Goods for a further period of time from 1 Apr 2022 to 31 Dec 2023.

For the purpose of encouraging the private sector to assist the Government with the Covid-19 Pandemic problem, Royal Decree (No 720) gazetted on 13 July 2021, provided Thailand corporate entities an exemption from value added tax for the importing and donation of Covid-19 medicines and medical supplies during the period of 01 Mar 2021 to 31 Mar 2022.

But as the Covid-19 Pandemic continues to be a problem, Royal Decree (No 755) has been issued to extend the VAT concession under Royal Decree (No 720) thru to 31 Dec 2023, as follows:

The VAT Exemption under Royal Decree (No 755)

Applicability

From 01 April 2022 to 31 December 2023.

The VAT Exemption

Exemption from value added tax for importing and donating medicines, medical supplies, medical tools and/or medical equipment for Covid-19.

The Rules and Conditions

The rules and conditions under the Royal Decree are as follows:

1. The medicines and the medical goods imported by the corporate entity shall be donated to:

• Government hospitals;
  
• Government medical agencies other than hospitals; or
  
• Designated charitable organizations and nursing homes under Section 47 (7) (b) of the Revenue Code; and

2. The corporate entity claiming the exemption from value added tax:

• Shall not include the costs of the imported medicines or medical goods as expenses for computing corporate income tax or for Input VAT; and
  
• Shall comply with the Revenue Department's additional rules, procedures and conditions.

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