What is VAT in Thailand? A Simple Guide

Value Added Tax (VAT) is an indirect tax on goods and services. Thailand’s current rate is 7%.

Who pays VAT

• Businesses with revenue over 1.8 million THB/year must register for VAT
• Consumers pay VAT embedded in the price of goods

How to calculate VAT

Adding VAT (from net): gross = net × 1.07

• Example: 1,000 THB goods + 7% VAT = 1,070 THB

Removing VAT (from gross): net = gross ÷ 1.07

• Example: paid 1,070 THB → VAT = 65.42 THB, net = 1,004.58 THB

Calculate automatically

Use our VAT Calculator — choose add or remove mode, free and no sign-up.