7% VAT rate extension now law
15 October 2018
Earlier this year, we reported that the Thai cabinet had approved an extension of the 7% VAT rate for another year until 30 September 2019. A Royal Decree must be issued under the Revenue Code to give effect to this decision and this has now been gazetted.
Most goods and services are subject to VAT, including imported goods. Over the years, the 7% VAT rate has been implemented by a series of Royal Decrees issued under the Revenue Code, with the last one expiring on 30 September 2018. Hence another Royal Decree had to be issued to maintain the VAT rate at 7% (the default rate under the Revenue Code is 10%). The government cited economic conditions and investor confidence for maintaining the VAT rate at 7%.