Page 117 - Introduction to Investment Laws in Thailand

In addition, the individual may file their tax information by visiting
the revenue department in all provinces of Thailand. Also, an individual
may hire an accountant to provide the services in filing his/her tax
information.

5.3 Value Added Tax

According to the Revenue Code, the Value Added Tax (VAT) is enforced
on any person or entity who regularly supplies goods or provides services
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in Thailand and has an annual turnover exceeding 1.8 million baht.
Section 80 Revenue Code sets out a VAT rate of 10% to be applied in VAT
calculation. The businesses in the 1) Sales of goods, 2) service provision
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and 3) import must pay VAT. However, with the concern that the VAT
can pose a significant financial burden to people and economic
development, the government issued the Decree according to the
Revenue Code 2020 to reduce VAT to 7%. Thus, the VAT rate is reduced
from 10% to 7% by virtue of the Decree according to the Revenue Code
2020. The Thai government has to continue issuing the Decree each year
to reduce the VAT to 7%. Nevertheless, some businesses are able to

receive VAT exemption according to section 80/1. The businesses are the
following:

- Registered entrepreneur that obtains sale order from
international trade and the registered entrepreneur is the
producer in Thailand. The registered entrepreneur also has to
be the person that completes the export procedure under the
Thai Customs Act.
- Services business in Thailand that provide service at
international market according to criteria is set by the
director of revenue department.

142 Revenue Department, 2021, Value Added Tax,
<https://www.rd.go.th/english/6043.html >
143 Revenue Code section 80

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