In addition to transactions that are zero-rated (see Value Added Tax Rates), the Thailand VAT law prescribes for transactions that are exempt from VAT and VAT exempted transactions for SMEs, as follows:

VAT-Exempted Transactions

Numerous transactions are exempted from VAT in Thailand. These transactions include the following:

• Sales of agricultural products; 
• Sales of animals; 
• Sales of fertilizers; 
• Sales of fish and animal feed; 
• Sales of drugs and chemicals products for plants and animals; 
• Sales of newspapers, magazines and textbooks (see eBooks VAT insight); 
• Educational services rendered by government and private schools; 
• Artistic and cultural services; 
• Medical, auditing and legal representation services; 
• Health care services rendered by clinics; 
• Research services (see our Research Services VAT insight); 
• Library, museum and zoological garden services; 
• Hire of labor rendered by employees; 
• Amateur sport event services; 
• Public entertainer services; 
• Domestic transportation; 
• International transportation services by land; 
• Rental of immovable property; 
• Government agency and local government services; 
• Government ministry, sub-ministry and departmental services; 
• Religious and public charitable services; and 
• Goods and services transactions that are subject to Specific Business Tax instead of VAT (including commercial banking, financial and credit foncier services, life insurance services, pawnbroking, regular transactions similar to commercial banking transactions, sales of immovable property, sales of securities, and securities trading and factoring services).

VAT-Exempted Transactions for Small Businesses

Additionally, the Thai law exempts from VAT, a supplier carrying on a business of sale of goods or provision of services liable to value added tax, when the value of the VAT base does not exceed 1,800,000 Baht per fiscal year*.

* As prescribed in Royal Decree (No 432), applying from 01 April 2005.

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