Registration for Value Added Tax (VAT) with the Thailand Revenue Department is required for a company that has income of 1,800,000 Baht or more in any year. Registration for VAT is also required for any Thai company that wants to sponsor a work permit for a foreigner. Certain types of business licenses also require a Thai company to register for VAT.
Otherwise, registration for VAT is voluntary. One reason a Thai company might want to voluntarily register for VAT is if it has a substantial amount of start up expenses such as office equipment and design / fit out services. By voluntarily registering for VAT, a Thai company can get a tax credit or refund of the VAT paid to purchase such office equipment and design / fit out services.
The rate of VAT in currently set at 7%. By not registering for VAT, a Thai company does not have to charge its clients or customers an additional 7% and thus can provide its goods or services at a lower cost.
Our VAT Registration Service includes the following: