VAT Registration in Thailand: The 1.8M THB Threshold, PP.30 Filing and Tax Invoices

Thailand's value added tax (VAT) applies to the sale of goods and services in Thailand and to imports. For a new company, the key questions are:

• when you must register;
• whether to register early;
• how to issue a valid tax invoice;
• how the monthly PP.30 return works;
• what to do when you pay foreign suppliers.

1. The rate: 7% until at least 30 September 2027#

The Revenue Code rate is 10%, but it has been reduced by royal decree every year since 1999. The rate actually charged is 7%: 6.3% VAT plus a local tax of one-ninth, which comes to 0.7%. Royal Decree No. 807, published in the Royal Gazette on 23 August 2026, extended the 7% rate to 30 September 2027.

Contracts running past that date should include a clause that the price is "exclusive of VAT at the rate in force".

2. Who must register#

You register on form Por Por 01 (VAT 01), online or at the Area Revenue Office for the company's registered address. The RD may inspect the premises before issuing the Por Por 20 VAT certificate. A virtual office without a real place of business is the most common reason for delays (see our virtual office guide).

Each branch (each place of business) must be listed. Display the Por Por 20 at each one.

Should you register before 1.8M?#

Register early if:

• your customers are VAT-registered companies, which can reclaim the VAT you charge, so it costs them nothing;
• you have significant input VAT to reclaim (fit-out, equipment, inventory);
• you need the Por Por 20 for a work permit or a supplier listing. Many corporate buyers will not onboard a non-registered supplier.

Do not register early if your customers are consumers, because the 7% becomes a price increase or comes out of your margin.

3. Exempt, zero-rated and outside the scope#

Office rent tip. Rent of office space is exempt, but services in a lease (air-conditioning, cleaning, security) are VAT-able. That is why Bangkok landlords split the deal into a lease agreement (no VAT; 5% withholding) and a service agreement (7% VAT; 3% withholding).

Exporting services. Zero-rating for services requires that the service is used abroad. A software studio building an app for a Singapore client that is used outside Thailand can zero-rate. Consulting for the Thai subsidiary of a foreign group cannot, even if the parent pays.

4. Tax invoices#

A full tax invoice must show:

1. the words "tax invoice" (ใบกำกับภาษี) prominently;
2. the seller's name, address and 13-digit tax ID, plus branch number ("head office" = 00000);
3. the buyer's name, address and tax ID, plus branch, if the buyer is registered;
4. a serial number and book number, if any;
5. a description, quantity and value of goods or services;
6. the VAT amount, shown separately;
7. the date of issue.

Since 2020 businesses can issue e-Tax Invoices (e-Tax Invoice & e-Receipt) registered with the RD. Buyers can only claim input VAT with a valid tax invoice, so a wrong buyer address or tax ID makes the invoice useless to them. Expect corporate clients to reject invoices with errors.

When the tax point arises:

• goods: on delivery or transfer of ownership, whichever comes first;
• services: on receipt of payment. This matters for retainers and advance payments.

5. Monthly return PP.30#

Worked example. A Bangkok café-roastery registered for VAT has monthly sales of 600,000 THB before VAT.

If it buys a 700,000 THB espresso machine in a given month, input VAT jumps by 49,000 THB. That month may show a credit, which can be carried forward to future months.

6. Paying foreign suppliers: reverse charge on PP.36#

When a Thai company pays for a service performed abroad and used in Thailand, it must self-assess VAT:

• Form PP.36, for services such as foreign SaaS, overseas consultants or a foreign parent's management fee.
• Due by the 7th of the month after payment (paper), or with the e-filing extension.
• The VAT paid on PP.36 can be claimed as input VAT in the following month's PP.30, so for a fully taxable business it is mainly a cash-flow and compliance item.
• Non-registered companies must also file PP.36. For them it is a real cost.

Withholding tax often applies to the same payments: 15% on PND.54, subject to tax treaties (see our withholding tax guide).

Foreign digital platforms. Under the e-Service VAT rules, platforms such as advertising networks or app stores that are registered in Thailand under VES charge 7% to non-registered customers. A VAT-registered Thai business should give its tax ID and account for VAT itself (PP.36) where the platform does not charge it.

Imports and exports of goods#

• Imports. The Customs Department collects 7% VAT when goods enter Thailand. It is charged on the CIF value plus import duty and any excise, and it applies whether or not the importer is VAT-registered. A registered importer claims it back as input tax on the PP.30, using the customs receipt as evidence. Since July 2024, low-value parcels under 1,500 THB no longer escape VAT. This affects companies that bring in samples and small parts by courier.
• BOI machinery. A BOI certificate can exempt imported machinery from import duty. Check the certificate itself before you assume the VAT is exempt as well.
• Exports. Exported goods are zero-rated if you keep the export entry and the shipping documents. Exporters therefore often carry a permanent input-VAT credit and claim refunds. Services count as exported only when they are used entirely outside Thailand. Any use in Thailand, such as market research about Thailand done for a foreign client, makes the service standard-rated.

7. Penalties and surcharges#

8. Deregistration#

If turnover falls below the threshold or the business stops, you may apply to cancel the registration on Por Por 08. Cancellation can trigger output VAT on remaining inventory and assets for which input VAT was claimed. Plan it with the accountant at closure (see our company closure guide).

9. VAT set-up checklist for a new company#

• [ ] Decide: register on incorporation, or monitor the 1.8M threshold month by month.
• [ ] Make sure the registered address is a real place of business with landlord consent.
• [ ] File Por Por 01; prepare photos of the office and signage for the RD inspection.
• [ ] Display Por Por 20 at the premises.
• [ ] Set up invoice templates or e-Tax Invoice with the tax ID and branch number.
• [ ] Enter purchase and sales VAT reports (required ledgers) every month.
• [ ] Calendar: PP.36 by the 7th, PP.30 by the 15th (+8 days e-filing).
• [ ] Check contracts for a VAT-exclusive pricing clause.

Frequently asked questions#

Do I need to register if all my clients are overseas? If your turnover exceeds 1.8M THB, yes, even though export services are zero-rated. Registration lets you reclaim input VAT.

How long does registration take? Often 1–3 weeks, depending on whether the Area Revenue Office inspects your premises.

Is VAT charged on residential rent? No. Rental of immovable property is exempt. Services in serviced apartments and hotels are VAT-able.

Can I reclaim VAT on a company car? Input VAT on passenger cars of up to 10 seats, and their fuel, is generally not claimable unless the business is car rental or sales.

What if a supplier's tax invoice has an error? Ask for a cancelled-and-reissued invoice. You cannot claim with a defective one.

Is 7% guaranteed after September 2027? No. It depends on a new royal decree. Without one, the statutory 10% would apply.

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Related guides#

• Corporate Income Tax in Thailand: Rates, SME Rates, Filing Deadlines
• Withholding Tax in Thailand: Rates, PND Forms and Deadlines for Businesses
• Virtual Office and Registered Address in Bangkok: What Works for DBD, VAT and Work Permits
• Accounting and Audit Requirements for Thai Companies