Normally, the VAT rate is 10% in Thailand, but it was reduced to 7% as part of economic measures after the 1997 financial crisis.

The Thai Cabinet has extended the reduced VAT rate of 7% until 30 September 2026.

This announcement was made by the Office of the Thai Prime Minister on 9 September 2025.

Normally, the VAT rate  in Thailand is 10%, but it was reduced to 7% as part of economic measures after the 1997 financial crisis.

Pinsai Suraswadi, Director-General of the Revenue Department, said “The current VAT reduction to 7% is set to expire on 30 September 2025. Recognising the importance of building confidence and supporting the continued growth of the national economy, the Ministry of Finance, through the Revenue Department, has proposed a draft Royal Decree under the Revenue Code to extend the 7% VAT rate (including local taxes) for another year, from 1 October 2025 to 30 September 2026.”

“This extension will help sustain domestic consumption levels, thereby enabling the Thai economy to grow in line with its targets,” Suraswadi added.