Value-added Tax, or VAT, in Thailand

The Thailand Revenue Code requires many businesses to charge and pay value-added tax on certain goods and services. The rate is 7%, but there are some exemptions. Thailand’s VAT regime is similar to that implemented in other countries, but with their own specific requirements. This includes requiring Value Added Tax payments for services provided in Thailand for overseas consumers and vice versa.

Most businesses in Thailand need to register for VAT

Businesses providing goods or services subject to VAT with an annual turnover of over 1.8 million baht must register for VAT by submitting a PP 01 application to receive a Value-Added Tax number and certification (PP 20). Even businesses that don’t reach that turnover threshold often should register either to take advantage of potential refunds for Value Added Tax paid or if they plan on hiring foreign nationals. This is because a PP 20 certificate is one of the documents often required for a work permit application.

Importers may not have to register for VAT, but they still must pay VAT. The VAT on imported goods is collected at the point of entry by Thai Customs.

Value Added Tax in Thailand is a monthly obligation

You must submit VAT payments, along with a Form PP 30, each month before the 15th of the following month (currently this deadline is extended to the 23rd day if submitting online). If you received services from overseas vendors, you are obligated to file a Form PP 36 and pay Value Added Tax on their behalf by the 7th day of the following month (currently this deadline is extended to the 15th day if submitting online).

The Thai Revenue Department does allow for offsetting input VAT (paid for your goods or services) and output VAT (paid by you for others’ goods or services) but attention needs to be given to what is deemed as the correct “tax point”.  The tax point is the date in which the tax is recognised. In Thailand, this is generally the date in which an invoice is paid but it can also be the date when the invoice is raised.

GPS Accounting can help you navigate VAT

It is most likely that your business in Thailand will have to deal with Value Added Tax. GPS Accounting has in-depth experience with the Thai Revenue Code and working with officials at the Revenue Department. Our team of Thai tax experts can assist you in setting up your Tax systems and ensuring smooth filings. Contact GPS Accounting today for your free initial consultation to determine the extent of and how best to handles your Thai Value Added Tax obligations.

Why not call or email us today? Our office is conveniently located on Sukhumvit Soi 23. Close to the BTS and MRT Stations here in Bangkok. Here are the walking directions from the BTS Asoke Station.