Cabinet approves extension of 7% VAT rate for another year
HLB Thailand Tax Team
On 17 September 2024 the Thai cabinet approved in principle a draft royal decree to be issued under the Revenue Code to extend the 7% VAT rate to September 30, 2025, for the sale of goods, the provision of services and imports.
Royal Decree No. 790 has since been issued to extend the 7% VAT rate as approved by cabinet.
The new royal decree is required because the 7% VAT rate is set to expire on 30 September 2024.
The benefits expected from this decision are:
1) Private consumption spending within the country and the Thai economy will expand as targeted.
2) The business sector can be confident in the Thai economy and private investment within the country will expand as targeted.
3) The tax rate will not increase costs for the business sector and households.
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