Thailand Value Added Tax is similar to other countries, whereby suppliers are required to compute and remit VAT to Thailand's tax authority on the basis of Output VAT less Input VAT.

Output VAT

Output VAT is the amount of VAT on the "tax base", which is:

• The value received or receivable by a supplier on each sale of goods and services transaction,

Including:

• Any excise tax that may apply on a supplier's sales of goods and services transactions,

But not including:

• Discounts and allowances granted by a supplier at the time of a sale of goods or services and deducted from the price of the goods or services transaction,
• Rebates and subsidies, and
• Output VAT. 

Input VAT

Input VAT includes:

• VAT that a supplier pays on purchases transactions; and
• VAT paid at the time of import;

But does not include:

• VAT for which a Tax Invoice is missing;
• VAT that is shown in a Tax Invoice, which does not contain the prescribed information or is incorrect or inadequate;
• VAT on purchases not directly connected with a supplier's transactions not subject to VAT; and
• VAT that is shown in a Tax Invoice, which is issued by a person who is not permitted to issue Tax Invoices.

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