Thailand’s Revenue Department has confirmed the continuation of the 7% Value Added Tax (VAT) rate until 30 September 2027 following Cabinet approval of the extension proposal submitted by the Ministry of Finance. VAT exemptions for essential goods and services and small-scale operators with annual revenue not exceeding THB 1,800,000 will remain in place.
Thailand’s Revenue Department has confirmed that the Value Added Tax (VAT) rate of 7% will continue following the Cabinet’s approval of a proposal to extend the period for reducing the VAT rate until 30 September 2027.
The Ministry of Finance, through the Revenue Department, submitted the proposal for Cabinet consideration, which was approved on 27 July 2026.
Under the extension, VAT collection on general sales of goods and provision of services will continue at the 7% rate.
Essential goods and services remain exempt
The Revenue Department stated that essential goods and services necessary for daily living will continue to be exempt from VAT.
The exemptions cover items including food preparation ingredients such as rice, meat, vegetables, fruits, fresh seafood and fresh eggs, as well as road transport services.
The measure is intended to reduce the cost burden on the public amid the current economic situation.
VAT exemption for small-scale operators continues
Small-scale operators selling goods or providing any type of service will also continue to be exempt from VAT if their annual revenue does not exceed THB 1,800,000.
The Revenue Department confirmed that the VAT exemption threshold for these operators will remain unchanged under the extended VAT measure.
This announcement was made on 2 August 2026.
Earlier, Thailand’s Cabinet 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.
