Thailand extends the temporary VAT reduction to 7% until 30 September 2027. The cabinet endorsed a draft royal decree to keep the rate at 6.3% excluding local tax, or 7% including local tax, for all sales of goods, services and imports.
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NationThailand · 10 days ago
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.
Comarch · 30 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.
Live Law Biz · about 19 hours ago
India's Gujarat High Court dismissed the State's plea and upheld the VAT tribunal's decision that seeds used for sowing are exempt from VAT under the notification dated 29 April 2006. The court quashed revisional proceedings that had revived a tax demand of ₹1.72 crore against Western Agri Seeds Ltd.
TaxO · 3 days ago
India: The GST Appellate Tribunal ruled that GST authorities cannot challenge undisputed pre-GST credits under Section 74 of the CGST Act. The decision confirms that transitional credits from CENVAT, Krishi Kalyan Cess and VAT cannot be denied without specific findings, and Section 74 penalties are unsustainable.
Key Takeaways
As of 1 October 2026, Thailand's cabinet endorsed a draft royal decree that keeps the temporary VAT rate at 6.3% excluding local tax, or 7% including local tax, for all sales of goods, services and imports until 30 September 2027.
The extended VAT rate takes effect from 1 October 2026 in Thailand.
The original temporary VAT reduction was set to expire on 30 September 2026 before the cabinet extended it to 30 September 2027.
Primary source
Read the full article at OrbitaxThis summary was published on VATfaqs.com on 6 August 2026. It relates to VAT developments in Thailand. The original source is Orbitax.
