VAT to remain at 7% for another year in Thailand

Prasong Poontaneat, the Director-General of the Revenue Department made an announcement on October 3 stating that the value-added tax (VAT) will remain at 7% for another year.

He said according to figures published in the Royal Gazette the precise rate for VAT is 6.3% with local tax charged at 0.7% making up the total 7% which will remain fixed until September 30, 2018.

VAT to remain at 7% for another year in Thailand

From October 1, 2018 VAT will then increase to a total of 9%, with 1% local tax meaning the total amount you will pay will be 10%, providing there is not another postponement.

VAT was introduced in Thailand in 1992 at a rate of 10% but was reduced to a total of 7% at the request of business owners and has remained at that level ever since.

Revenue officials predict that by increasing VAT to a total of 10% it would generate the government an additional 232 billion baht per year.

The Thai cabinet voted on postponing the VAT increase for another year on August 15 over fears that the increased rate would cause an increase in goods and services which would have an adverse effect on the publics spending.

Source : ThaiPBS

Content : LovePattayaThailand


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