Royal Decree No. 807 has been issued to extend the reduced Value Added Tax (VAT) rate of 7% on the sale of goods, provision of services, and importation of goods. The reduced VAT rate will continue to apply where VAT liability arises during the period from 1 October 2026 to 30 September 2027.
The Thai government has extended the reduced VAT rate of 7% until 30 September 2027 to support domestic consumption and sustain Thailand’s economic growth in line with its policy objectives.
(Source: The Revenue Department’s website)
Author's Notes:
Given the ongoing uncertainty in the Middle East region and broader global economic challenges, the extension of Thailand’s reduced 7% VAT rate is expected to support for domestic consumption, alleviate cost pressures on consumers, and enhance business confidence. While it provides businesses with greater certainty for budgeting, pricing and operational planning, the measure delays the additional government revenue that could otherwise be generated from a higher VAT rate.
[Contact Person: Ms. Thirapa Glinsukon, Partner]