The Value Added Tax (VAT) is generally imposed to goods and services supplied in or imported into Thailand. The trader will charge VAT on the sale of goods or provision of services to the consumer. The businesses which are excluded from VAT subject to specific business tax, businesses necessary for maintenance of life and social welfare, cultural services, religious and charitable services.
The current rates are 7% and 0% with some exemptions from VAT. A company must register for Value Added Tax if it is expected that its gross income will exceed 1.8 million baht per annum or within 30 days of the date they reach 1.8 million baht in sales.
The VAT payer is required to file a monthly VAT return and pay the tax monthly, on or before the fifteenth day of the following month. Failure to register as a VAT payer, file a VAT return, or issue a tax invoice to a customer, is subject to a penalty of twice the amount of the tax due.