VAT in Thailand
Updated on Monday 25th July 2016
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The VAT (Value Added Tax) in Thailand has been introduced in this country since 1992. Prior to this year, Thailand used to impose the BT (Business Tax). VAT is an indirect taxation levied on the value added of each phase of distribution and production of a certain product or service. At the present, the value of VAT in Thailand is set at 7%.
Who must register for VAT in Thailand?
Any individual or organization who supplies goods or services on a regular basis in Thailand with a turnover of more than THB 1.8 million (USD 51,151) per year is subject to VAT in Thailand.
Any individual or organization who is subject to VAT in Thailand has to register to be a VAT recorded individual or organization. The registration for VAT must be made:
• prior to the business operation;
• in maximum 30 days after its turnover has exceeded THB 1.8 million.
Exemptions from VAT in Thailand
According to the domestic Revenue Department the activities which are exempt from VAT in Thailand are:
• Imports and sales of unprocessed agricultural goods and related products like animal feeds, fertilizers, pesticides and others;
• Imports and sales of textbooks, newspapers and magazines;
• A range of elementary services, like:
o local and international land transports;
o healthcare services offered by government, clinics and private hospitals;
o educational services offered by government, private schools and certain acknowledged educational organizations;
• Certain professional services, such as medical, auditing, legal in court services and others;
• Turnover from business, trade, agriculture, industry, transport or another activity not mentioned above. Our company formation professionals in Thailand can provide more details on what these activities are.
• Cultural services such as library services, zoos or amateur sports;
• Services in the domain of labor employment, research, as well as technical and public entertaining services;
• Goods exempt from import duties;
• Imported products which are supervised by the Customs Department that are about to be re-exported and have the right to receive refunds for import duties;
• Certain services like charitable and religious ones, as well as government agency and local authority services.
For further information, we invite you to contact our Thai company formation advisers.