Thailand has extended the reduced Value-Added Tax (VAT) rate of 6.3% for sales of goods, provision of services and imports from 1 October 2026 to 30 September 2027, maintaining the effective VAT rate at 7% including the local government allocation.
Thailand has extended its reduced Value-Added Tax (VAT) rate of 6.3% for another year, from 1 October 2026 to 30 September 2027. Including the 0.7% local government allocation, the effective VAT rate remains 7% on sales of goods, provision of services and imports.
The extension is set out in Royal Decree No. 807 of 20 August 2026, published in the Royal Gazette on 23 August 2026. The decree takes effect on 1 October 2026.
Thailand’s standard statutory VAT rate is 10%, but the rate was reduced to 7% following the 1997 Asian financial crisis and has generally been extended annually. The latest extension is intended to support domestic consumption growth and overall economic expansion.
Royal Decree No. 807 was issued under Section 175 of the Constitution of the Kingdom of Thailand and Section 80 of the Revenue Code. It amends Section 4 of Royal Decree No. 646 (B.E. 2560), as previously amended by Royal Decree No. 799 (B.E. 2568).
