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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 generally follows the same VAT framework as other Thai-incorporated entities. VAT-registered businesses generally charge VAT on taxable supplies, issue compliant tax invoices, file monthly returns and keep supporting records.
Key VAT considerations
1. VAT registration threshold
VAT registration is generally required within 30 days after annual turnover exceeds 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 offset eligible input VAT against output VAT if the legal and documentary requirements are met. Not every expense or VAT amount qualifies.
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.
WMC Practical Note
Incomplete or incorrect supplier tax invoices are a common VAT compliance issue. Before recording input VAT, check the required invoice details and whether the expense and supporting documents meet the conditions for claiming it.
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
