On 20 Sep 2024, Thailand Tax Royal Decree (No. 790) was gazetted, extending the reduced 7% standard rate of VAT for another one year to 30 Sep 2025.

This Insight has been updated for the enacted Royal Decree (No. 790).

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 reduce the standard rate of VAT to 7%.

The last two enacted Royal Decrees are as follows:

For the following transactions	01 Oct 2023 to 30 Sep 2024(1)	01 Oct 2024 to 30 Sep 2025(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. 780) BE 2566, gazetted on 16 Sep 2023.
(2) As prescribed in Royal Decree (No. 790) BE 2567, gazetted on 20 Sep 2024.

Zero Rate VAT

The rate of 0% VAT applies for the following zero-rated transactions:

1. Exports of goods;
2. Exports of services (i.e. services performed in Thailand and consumed in a foreign country), see our Export Services VAT insight; 
3. International transport services by aircraft or sea-going vessels;
4. Sales of goods and services to Thai government ministries, departments or state enterprises under foreign loan assistance programs;
5. Sales of goods and services to United Nations organizations, agencies, and foreign government embassies and consulates;
6. Sales of goods and services to international organizations that Thailand is obliged under agreements with organizations to treat like embassies;*
7. Sales of goods and services to foreign economic and trade offices that are established in Thailand under agreements with foreign governments;*
8. 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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