Value Added Tax (VAT) is an indirect tax calculated on the sale of goods or services in Thailand.
VAT Payable = Output Tax (sales VAT) minus Input Tax (purchase VAT)
In case your purchase VAT is more than you sales VAT, you may keep your tax credit to report month after month. Alternatively, you can ask a refund to the Revenue Department when submitting your VAT form (PP30) to the Revenue Department.
|General Thai rate||7%|
|Imported services or goods||7%|
|Exported services or goods||0%|
|Sales of services or goods to state-owned entities or government||0%|
|Sales of goods from companies located in Free Trade Zones||0%|
For services, the place where services are deemed to be rendered characterizes the situation of export or not. For instance, a company producing a website in Thailand for a client located in France is not subjected to VAT in Thailand. It would not be the case if this client was a Thai company.
Alternatively a sourcing company providing services in supervising productions in Thailand for a textile industry situated in Germany has to pay VAT on its received service incomes.
- Companies with a turnover less than 1,8 million baht excepted if a visa or work permit are delivered to foreign employees or directors;
- Import of magazine, newspapers or books;
- Medical Services;
- Service billed by Thai governmental organization;
- Educational services;
- Imports of certain categories of agricultural products;
- Statutory Audit services;
- Renting of immovable properties.
- Certain cultural services.
On the 15th of the month following the date of the issuance date of the tax invoice (receipt).