Longstanding Oct 2023 VAT rise shelved; Oct 2024 potential next date
The Thai Ministry of Finance confirmed on 28 August 2023 that the scheduled rise in VAT from 7% to 10% will not go ahead on 1 October 2023.
VAT was cut from 10% to 7% in 1999, with a return to 10% rolled over numerous times (see below).
The economy has recovered strongly from the effects of COVID, and the Ministry is keen not to add to the effects of inflation The Finance Ministry has forecast economic growth of 3.5 per cent this year, after 2022’s 2.6 per cent expansion..
Nov 2021: 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.
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 – 11% (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.
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