Thailand · Tax & accounting
VAT in Thailand
VAT in Thailand is 7 percent, and you have to register once your turnover passes THB 1.8 million a year, or sooner if you plan to hire foreign staff. We handle the registration, the monthly PP 30 returns, and the input VAT you can claim back.
Overview
How VAT works in Thailand
Value-added tax is a 7 percent consumption tax on most goods and services in Thailand, collected by the Revenue Department. A registered business charges VAT on its sales, the output tax, offsets the VAT it pays on its purchases, the input tax, and remits the difference each month. Where input tax is higher, the excess is refunded or carried forward.
The two things that matter most are knowing when you have to register, and filing the monthly return on time once you are. Both catch out foreign-owned companies, the first because the threshold is lower than people expect, the second because the return is due even in a month with no sales.
Need to add or strip the 7 percent from a figure? Our Thailand VAT calculator does it both ways in a couple of clicks.
Registration
When you have to register for VAT
Any business supplying goods or services in Thailand has to register for VAT once its annual turnover passes THB 1.8 million, and it has 30 days from crossing that line to do it. Below the threshold, registration is voluntary, which many businesses still choose so they can issue tax invoices and reclaim the VAT on their own purchases.
Some businesses register regardless of turnover. Importers are subject to VAT from the first baht, collected at the border. Foreign companies selling digital services to consumers in Thailand register once their Thai turnover passes the same THB 1.8 million. And any company that wants to employ foreign staff and sponsor work permits has to be VAT-registered whatever its revenue, which is the trigger for most foreign-owned companies here.
Registration is filed on Form PP 01 with the Area Revenue Office, before you start trading or within the 30-day window. Once it is approved you receive a VAT number, and the monthly filing obligation starts from that point.
Not registering is not an option once you cross the line. Failing to register when required is a criminal offense: a fine of up to THB 5,000, up to a month’s imprisonment, or both, and you stay liable for the VAT as if you had registered. The threshold is judged on your actual turnover, so it catches up either way.
Not sure whether you have crossed the line, or planning to hire from abroad? Have our team check your position and handle the registration.
Rates
VAT rates and what is exempt
The standard rate is 7 percent, a reduced rate the government has extended by Royal Decree, currently to the end of September 2026; the statutory rate behind it is 10 percent. Exports and certain international services are zero-rated, which means no VAT is charged on them but the input VAT behind them is still recoverable.
A separate group of activities is exempt rather than zero-rated, including most unprocessed agricultural goods, education, healthcare, and residential rent. Exempt supplies carry no VAT, but the input VAT on costs behind them cannot be reclaimed, which is the practical difference from zero-rating. A few sectors, such as banking, finance, and the sale of real estate, fall under Specific Business Tax instead of VAT altogether.
Working out the VAT on a price or an invoice? Our Thailand VAT calculator adds or extracts the 7 percent for you.
Filing
Monthly VAT filing
VAT is filed every month on Form PP 30, due by the 15th of the following month, with about eight extra days if you file online. The return sets the VAT you charged on sales against the VAT you paid on purchases, and you pay the difference, or carry it forward and reclaim it when your input tax is higher. A return is due every month, even one where you made no sales at all.
A registered business has to issue a proper tax invoice on every sale, increasingly through the e-Tax invoice system, and keep input and output VAT reports behind the returns. When you pay for services from a supplier abroad that has no presence in Thailand, you self-assess the VAT and remit it on Form PP 36. Late filing carries a surcharge of 1.5 percent a month on the tax due, on top of a penalty, so the monthly rhythm is one to keep.
VAT filing is monthly and unforgiving of gaps. Let our Bangkok team run your PP 30 returns and keep your input VAT claimed.
How we help
Your VAT, handled by Emerhub
From the registration to every monthly return.
VAT registration
We work out whether and when you must register, prepare the PP 01, and handle it with the Area Revenue Office.
Monthly PP 30 returns
Output and input VAT reconciled each month, the PP 30 prepared and filed by the 15th, with the input VAT you can claim back.
Tax invoices and e-Tax
Compliant tax invoices on every sale and the move to the e-Tax invoice system, plus the input and output VAT reports behind your returns.
Cross-border VAT
Self-assessed VAT on services from suppliers abroad, the PP 36 filings that go with it, and the planning around zero-rated exports.
Common questions
Thailand VAT questions
What businesses ask before they register.
What is the VAT rate in Thailand?
The standard rate is 7 percent, set by Royal Decree and currently extended to 30 September 2026. The statutory rate behind it is 10 percent. Most goods and services sold in Thailand are charged at 7 percent.
When do I have to register for VAT?
Once your annual turnover in Thailand passes THB 1.8 million, you have 30 days to register on Form PP 01 with the Area Revenue Office. Importers, non-resident digital service providers, and any company that wants to sponsor work permits for foreign staff must register regardless of turnover.
Can I register for VAT voluntarily?
Yes, even below the threshold, so you can issue tax invoices and reclaim input VAT on your purchases. Deregistering later usually means waiting at least a year and getting Revenue Department approval.
Do I need VAT registration to hire foreigners?
Yes. A company that employs foreign nationals and sponsors work permits has to be VAT-registered whatever its revenue. This is why most foreign-owned companies register from the start rather than waiting for the turnover threshold.
Do foreign or online businesses have to register?
Yes. Importers register from the first sale with no threshold, and foreign providers of digital services to consumers in Thailand register once their Thai turnover passes THB 1.8 million. Business-to-business digital services are handled by a reverse charge instead.
What is PP 30?
PP 30 is the monthly VAT return. It sets your output VAT (the 7 percent you charged on sales) against your input VAT (the 7 percent you paid on purchases), and you pay the difference. It is due by the 15th of the following month, with about eight extra days if you file online, even in a month with no sales.
What is the difference between zero-rated and exempt?
Zero-rated sales (exports, certain international services) carry no VAT but you can still reclaim the input VAT on the costs behind them. Exempt sales (most unprocessed agricultural goods, education, healthcare, residential rent) also carry no VAT, but you cannot reclaim the input VAT, which is the practical difference.
What happens if I do not register when I should?
Failing to register when required is a criminal offense: up to THB 5,000 fine, up to a month’s imprisonment, or both, and you stay liable for the VAT as if you had registered. The Revenue Department judges the threshold on your actual turnover, so it catches up either way.
Do I have to file every month, even with no sales?
Yes. Once you are VAT-registered, the PP 30 is due every month regardless of whether you made any sales. Late filing carries a surcharge of 1.5 percent a month on the tax due, on top of a penalty.
What is the e-Tax invoice system?
A Revenue Department system for issuing tax invoices and receipts electronically, with the data sent to the Revenue Department directly. It is increasingly required and is what most VAT-registered businesses are moving onto.
On the ground in Thailand
Talk to our Bangkok team
Tell us your turnover, whether you plan to hire foreign staff, and where your VAT position stands. Our Bangkok team will handle the registration, the monthly PP 30 returns, and the input VAT you can claim back.
Emailthailand@emerhub.com
Phone+66 92 554 5444
OfficeUnited Business Center II
591 Sukhumvit 33, Watthana
Bangkok 10110
591 Sukhumvit 33, Watthana
Bangkok 10110