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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