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Thailand to raise VAT rate to 10% Sept 2023

Longstanding VAT rise now scheduled for 2023

Thailand has postponed again plans to raise its VAT rate from 7% to 10% in September. It now intends to raise the standard Value Added Tax rate on 1 September 2023.

Thailand originally cut its VAT rate from 10% to 7% in 1999, and has since rolled over the return on numerous occasions.  Whilst the typical regional rate for South East Asia is 10% or above, Thailand has tax competition with the city-state of Singapore, which has a similar rate on its Goods and Services Tax rate:

  • Indonesia – 10%  (Indonesia VAT rise 2023)
  • Philippines – 12%
  • Vietnam – 10%
  • Singapore – 7%
  • Malaysia – 10%

Thailand has only just begun to grow again following the COVID-19 crisis. Meanwhile, the Finance Ministry told the Cabinet that the 7 per cent rate will not affect revenue collection for fiscal years 2021 and 2022, since it has already been incorporated in the revenue projection.

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