As of 02 August 2026, Thailand’s Revenue Department confirmed that the value-added tax (VAT) rate of 7 percent will remain unchanged for the entire 2025-2026 fiscal year. The circular, published on the department’s official website, reiterates the government’s decision to retain the reduced VAT level introduced to support economic recovery and to provide stability for businesses. It specifies that all taxable supplies made on or after the effective date must continue to apply the 7 percent rate, and it instructs taxpayers to adjust any pending VAT calculations accordingly. The measure is intended to ensure predictable tax burdens, facilitate financial planning, and uphold investor confidence. The full text of the circular, including detailed implementation guidance, is available for download at the link below. The continuation of the 7 percent VAT rate is part of the broader tax relief package announced by the Ministry of Finance earlier this year, aimed at alleviating the cost burden on consumers and supporting small and medium-sized enterprises that constitute the backbone of the Thai economy. The policy also reinforces the department’s commitment to simplify compliance procedures, including the acceptance of electronic VAT returns and the provision of guidance notes for affected sectors such as retail, hospitality, and tourism.
Key Takeaways
- VAT Rate: Confirmed at 7 percent for the entire 2025-2026 fiscal year.
- Effective Date: Effective immediately from 02 August 2026 and remains in force until further notice.
- Business Impact: Ensures price stability and simplifies tax reporting for all taxable entities.
Source: Read Original Announcement