Thailand’s Cabinet has approved a one-year extension of the 7% VAT rate from 1 October 2026 to 30 September 2027. The extension keeps the reduced rate at 7% (including local tax) for all sales of goods, services and imports, easing living costs and supporting economic stability.
The VATfaqs digest
Global VAT news, delivered Tuesday and Thursday. Free, curated from 50+ official sources, no spam.
No spam · Unsubscribe any time
Comarch · 20 days ago
Thailand's Cabinet approval of the OECD-led Global Minimum Tax exchange signals a shift toward mandatory e-invoicing. The move will require businesses to adopt the ETDA Standard 3-2560 XML schema and meet a 15-day transmission rule. The policy also offers a 200% double-tax deduction and a 1% electronic withholding tax rate until December 2027.
Nation Thailand · 6 months ago
Fitch Ratings warns that Thailand’s medium‑term fiscal framework relies on phased VAT increases that are politically difficult to implement, potentially delaying deficit reduction. The plan targets a 2.1% GDP deficit by FY2030, with VAT rising to 8.5% in FY2028 and 10% in FY2030. Political bargaining within the coalition government could jeopardise these fiscal objectives.
PKF Thailand · 7 months ago
This article explains how Thailand’s VAT rules treat trade and cash discounts, highlighting that only trade discounts granted at the time of sale and without conditions can be excluded from the VAT base. It cites the Revenue Department ruling No. Kor.Kor.0702/6077 (14 Oct 2025) that requires VAT to be calculated on the full selling price for conditional discounts, and notes that no VAT credit note can be issued when a deposit is refunded.
LuatVietnam · about 13 hours ago
Vietnam has introduced Circular 84/2026/TT-BTC, standardising the VAT refund process for foreign visitors and overseas Vietnamese. The new system links customs and the tax authority’s electronic invoice platform, requiring businesses to meet strict electronic invoicing and data integrity standards. Foreign passengers must verify invoices and present goods for inspection at least 30 minutes before departure.
Manila Times · 1 day ago
Philippines: The Bureau of Internal Revenue's RMC 59-2026 clarifies that nonresident digital service providers must register and file VAT returns even if transactions are VAT-exempt. This blanket registration requirement applies regardless of the P3 million threshold and could lead to suspension of operations for non-compliant providers.
Vietnam Law Magazine · 1 day ago
Vietnam's Ministry of Finance introduces Circular 84/2026/TT-BTC to standardise VAT refunds for foreign visitors and overseas Vietnamese. The new circular supersedes earlier directives and establishes a direct link between the Customs Department and the tax authority’s electronic invoice system. It sets clear timelines for account issuance, bank licensing, and passenger inspection procedures.
Key Takeaways
From 1 October 2026, Thailand’s Cabinet extended the 7% VAT rate until 30 September 2027.
During the extension, the reduced VAT rate excluding local tax is 6.3% for all sales of goods, services and imports in Thailand.
The VAT rate including local tax remains at 7% during the extension period in Thailand.
Primary source
Read the full article at NationThailandThis summary was published on VATfaqs.com on 27 July 2026. It relates to VAT developments in Thailand. The original source is NationThailand.
