Thailand cabinet approves extension of 7% VAT rate for one year
29 October 2025
On 9 September 2025, the Cabinet approved in principle a draft Royal Decree under the Revenue Code to extend the current reduced value-added tax (VAT) rate of 7% (inclusive of local tax) for another year
According to Mr. Pinsai Suraswadi, DirectorGeneral of the Revenue Department, the extension is intended to maintain domestic consumption and support the continued expansion of the Thai economy. The current 7% VAT rate is scheduled to expire on 30 September 2025; the new measure will therefore apply from 1 October 2025 through 30 September 2026, subject to publication of the Royal Decree in the Royal Gazette.
Reference (in Thai):
- Revenue Department News no. 34/2568. Retrieved from The Revenue Department of Thailand.
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Pongphan Narasin Director - Taxation Practice - Bangkok
Naritsaporn Tanapoonsin Director - Taxation Practice - Bangkok
Parin Supsavaipol Tax Director - Taxation Practice - Bangkok
