Thailand will maintain its reduced 7% VAT rate until 30 September 2027, aiming to ease inflationary pressures and support consumer spending amid ongoing global economic uncertainty. 

RF Report

Thailand’s Cabinet has approved extending the reduced value-added tax rate of 7% for another year from 1 October 2026 to 30 September 2027 in a press release issued on 27 July 2026.

The current reduced rate was set to expire on 30 September 2026.

The Revenue Department cited persistent economic headwinds—particularly Middle East instability driving up transportation and commodity costs—as justification for the one-year extension. The measure requires a Royal Decree under the Revenue Code, but no specific decree number was announced yet.

The 7% VAT includes local tax and applies to goods and services across the board. It replaces Thailand’s standard rate, which sits higher.

The government expects the lower rate to restrain price inflation and support household consumption during the uncertain global environment. The extension runs for exactly one year, after which the rate will revert unless the government approves another extension.