Longstanding VAT rise now scheduled for 30 September 2023
Thailand has postponed again plans to raise its VAT rate from 7% to 10% in September 2021. It now intends to raise the standard Value Added Tax rate on 30 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% (Singapore raises VAT to 9% 2024)
- 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.
VAT Calc’s global VAT and GST rates checker provides live indirect tax rates from around the world.
