Businesses in Thailand carrying on VAT-liable activities are generally required to register for VAT when annual turnover exceeds THB 1.8 million, subject to applicable exemptions and specific rules.
A foreign-owned company incorporated in Thailand is generally subject to the same Thai VAT framework as other Thai-incorporated entities. VAT-registered businesses are generally required to charge VAT on taxable supplies, issue compliant tax invoices, file monthly VAT returns, and maintain supporting documentation.
Key VAT considerations
1. VAT registration threshold
VAT registration is generally required within 30 days after annual turnover reaches THB 1.8 million for businesses carrying on VAT-liable activities, subject to applicable exemptions and specific rules. Businesses should assess what constitutes taxable turnover and whether an exemption or different tax treatment applies before relying on the threshold.
2. Input VAT and output VAT
VAT-registered businesses may generally credit eligible input VAT against output VAT, provided the relevant legal and documentary requirements are satisfied. Not every expense or VAT amount is automatically creditable.
3. Tax invoice requirements
Input VAT deductibility may depend on holding a valid tax invoice containing the required information and meeting applicable VAT conditions. The Revenue Department identifies tax invoices as evidence for claiming input tax credit and publishes required invoice particulars.
4. Exempt or non-VAT activities
Certain activities, transactions, or sources of income may be exempt from VAT or subject to different VAT treatment. The actual treatment should be reviewed based on the nature of the business and transaction.
5. Monthly VAT returns and records
VAT-registered businesses generally file VAT returns monthly. The underlying input VAT, output VAT, tax invoices and supporting records should be reconciled with the accounting records before filing.
General information, not case-specific advice
VAT treatment depends on the actual goods, services, place of supply, transaction documents, registrations and applicable exemptions. This guide provides a general overview and is not a determination of the VAT treatment of a specific transaction.
Official sources and references
- Thai Revenue Department — Value Added Tax guidance
- Thai Revenue Department — VAT registration threshold and registration timing
- Thai Revenue Department — Revenue Code provisions on VAT registration and tax invoices
- Thai Revenue Department — input VAT and output VAT provisions
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