Thailand extends VAT filing deadlines

Thailand unveiled a number of VAT relief measures, following the knock to the country’s economy from the COVID pandemic.

VAT deadlines extended

The deadline for a number of tax returns has been extended. VAT returns due on the 15th of the month are now only due on the last working day of the following month. For instance, VAT returns due on 15 September 2021 are now due on 20 October 2021.

Reduced penalties

Thailand’s tax authorities have also waived penalties on VAT owed during the September 2021 to October 2021 period. If VAT and surcharges are paid in full during the specified period, penalties will be waived.

Authorities may also reduce penalties, depending on how much tax is outstanding. If you have outstanding VAT obligations in Thailand, get in touch with a VAT specialist if you need further guidance on meeting your obligations. 

7% VAT rate extended

Thailand’s cabinet also approved extending the 7% VAT rate for two more years. The standard VAT rate in Thailand is 10%. VAT was due to revert to the standard rate on 30 September 2021, pending an extension. 

VAT in Thailand has been set at the reduced rate of 7% since 1997. 

Thailand’s digital services VAT now in effect

As of 1 September 2021, digital services VAT applies to foreign companies that supply digital services to customers in Thailand.  

Foreign companies that provide streaming and other digital services to Thai customers are now obliged to register for VAT if their turnover exceeds 1.8 million baht per year. 

A number of digital giants, including Facebook, Netflix and Spotify, have already registered for VAT in Thailand.