In Thailand, certain activities are exempted from Value Added Tax (VAT). These include:

  1. Small businesses whose annual turnover is less than 1.8 million Baht;
  2. Sales and import of newspapers, magazines and textbooks;
  3. Sales and import of unprocessed agricultural products and related goods such as fertilizers, animal feeds, pesticides, etc;
  4. Certain basic services such as:

– Transportation services such as domestic and international transportation by way of land;

– Renting immovable properties;

– Educational services provided by the government and private schools and other recognized educational institutions;

– Professional services such as medical and auditing services, lawyer services in court, and other similar professional services that have laws regulation such professions;

– Healthcare services provided by the government and private hospitals and clinics;

  1. Services in the nature of employment of labor, research and technical services and services of public entertainers;
  2. Goods exempted from import duties under the Industrial Estate law imported into an Export Processing Zone (EPZ) and under Chapter 4 of the Customs Tariff Act;
  3. Imported goods that are kept under the supervision of the Customs Department which will be re-exported and be entitled to a refund for import duties;
  4. Cultural services such as amateur sports, services of libraries, museums, zoos; and
  5. Other services such as religious and charitable services and services of government agencies and local authorities.

Know more about Thai taxation and understand its complexity. Contact MSNA, English speaking accountants and tax experts in Bangkok.