Thailand VAT registration 2025 for SMEs: threshold, timelines, PP30 and e-filing

Thailand VAT registration 2025 for SMEs: threshold, timelines, PP30 and e-filing

Introduction

If your Thai business regularly sells goods or provides services and your annual turnover exceeds 1.8 million THB, you are a taxable person and must register for VAT. Thailand’s Revenue Department confirms the 1.8 million THB threshold and the duty to register when the threshold is exceeded.

The VAT rate remains effectively 7 percent for another year starting 1 October 2025 through 30 September 2026, following Cabinet approval and publication steps. The government communication clarifies the reduced rate as 6.3 percent excluding local tax and 7 percent including local tax.

This guide explains Thailand VAT registration 2025, your timelines under the Revenue Code, how monthly PP30 filing works, the current e-filing extension, and the practical invoice rules.

The legal foundation at a glance

• Who must register. Any person or entity that regularly supplies goods or services in Thailand and has annual turnover exceeding 1.8 million THB is subject to VAT.

• When to apply. Section 85/1 requires the business person to apply for VAT registration within 30 days from the date the value of tax base exceeds the small-business threshold prescribed by Royal Decree.

• Filing frequency and due dates. VAT registrants file PP30 monthly. Paper filing is due by the 15th of the following month. E-filing receives an 8-day extension to the 23rd, currently extended for online submissions through 31 January 2027.

• Current VAT rate. Thailand continues the reduced 7 percent regime for the 2025 to 2026 fiscal period per Cabinet decision and related Royal Decree process.

• Zero-rated supplies. Exports and certain international services qualify for 0 percent VAT under the Code and practice, for example services performed in Thailand but used entirely overseas.

• Cancellation eligibility. A VAT registrant may request cancellation if the value of tax base remains below the small-business threshold for at least three consecutive years, as reflected in Section 85/10 guidance.

Thailand VAT registration 2025 checklist

1) Confirm that you are above threshold

Track rolling 12-month revenue. When turnover exceeds 1.8 million THB, you become liable to register.

2) Apply within 30 days

Section 85/1 sets a 30-day window to submit your registration once you cross the threshold. Missing this window risks penalties and assessments.

3) Decide on voluntary registration if below threshold

You may opt to register voluntarily to issue tax invoices and claim input VAT even if turnover is below 1.8 million THB, but monthly PP30 compliance then applies.

4) Know your rate and scope

As of 1 October 2025 to 30 September 2026, the government continues the reduced 7 percent VAT rate. The government note explains 6.3 percent excluding local tax and 7 percent including local tax for public communication clarity.

5) Prepare your tax invoices correctly

Tax invoices must carry the particulars prescribed in Section 86/4 and related orders. Incomplete invoices jeopardize input credit.

6) File PP30 on time

• Paper PP30: due by the 15th of the following month.

• E-filing PP30: due by the 23rd of the following month under the 8-day online extension now in force until 31 January 2027.

7) Manage refunds and credits

If input exceeds output, you may claim a refund or carry forward subject to Revenue Department rules and time limits.

8) Plan for cancellation only when eligible

You can request cancellation if your tax base stays below the threshold for three consecutive years, or other specific cases under the Code. Continue filing until the Revenue Department issues the cancellation order.

Worked examples

Example A: New SaaS startup crosses the threshold in August

A Thai company’s cumulative sales exceed 1.8 million THB on 20 August 2025.

• It must apply for VAT registration within 30 days from that date.

• First PP30 is due for the tax month in which it becomes a registrant. Paper due the 15th, e-file due the 23rd of the following month while the e-filing extension is active.

Example B: Exporter with zero-rated sales

A manufacturer exports 100 percent of output.

• Supplies qualify for 0 percent VAT where the statutory conditions are met.

• The company still registers and files PP30 monthly to report zero-rated outputs and claim input VAT.

Common pitfalls we prevent

• Late registration after passing 1.8 million THB. Section 85/1 is strict on timing. Missing the 30-day window invites penalties.

• Assuming the e-filing extension ended. The 8-day extension for online returns is currently extended through 31 January 2027. For PP30 this means the 23rd.

• Incomplete tax invoices. Missing particulars under Section 86/4 can invalidate input tax. Train teams and audit sample invoices monthly.

• Confusing zero-rated with exempt. Zero-rated is taxable at 0 percent and supports refunds, while exemptions generally block input recovery. Use the right classification.

Frequently asked questions

Is the VAT rate 6.3 percent or 7 percent Government communications describe 6.3 percent excluding local tax and 7 percent including local tax. For business operations and invoicing, treat the effective rate as 7 percent during 1 October 2025 to 30 September 2026, subject to the Royal Decree.

Do I still register if I sell only services to overseas clients You may still be a taxable person if you regularly provide services in Thailand. Some services may be zero-rated when used entirely abroad. Assess facts before deciding.

When can I cancel VAT registration If your value of tax base stays below the small-business threshold for three consecutive years, you may request cancellation under Section 85/10, subject to Revenue Department rules.

What are PP30 penalties for late filing and payment Thai practice references fines for late returns and a 1.5 percent per month surcharge on unpaid VAT under Section 89/1, reduced to 0.75 percent when an approved extension applies. Always prioritize on-time filing.

How GENTLE LAW IBL structures a compliant, low-friction setup

• Threshold simulation and timing. We model revenue to predict when you will cross 1.8 million THB, then prepare the file to meet the 30-day requirement under Section 85/1.

• Calendar discipline. We implement a recurring PP30 calendar with the 15th and 23rd checkpoints, aligned to the e-filing extension in force.

• Invoice controls. We roll out Section 86/4 compliant templates and audit trails to protect input tax.

• Zero-rate readiness. For exporters and service providers to overseas use, we document eligibility for 0 percent VAT.

Call to action

If you are approaching the 1.8 million THB threshold or want to switch to e-filing with clean invoice controls, GENTLE LAW IBL can register your VAT, build a PP30 calendar, and implement tax-invoice templates that pass audit.

Book a consultation: https://www.gentlelawibl.com