The Thai cabinet has approved a one-year extension of the reduced standard VAT rate of 7% on the sale of goods and provision of services.

Timeline

The reduced standard VAT rate of 7% will remain valid until September 30, 2024 (from October 1, 2023 to September 30, 2024).

Impact

Thailand's standard VAT rate was originally 10%, but was temporarily reduced to 7% as part of special economic measures. This reduced standard VAT rate was continuously extended until September 30, 2023, and will now remain in effect until September 30, 2024 based on the decision of the Thai cabinet.