Money & tax

What is VAT (Value Added Tax)?

VAT is a consumption tax charged on goods and services. Thailand's rate is 7%, legislated to remain at that level until 30 September 2026. On a Thai tax invoice it must appear as a separate line, not folded into the total.

A compliant Thai tax invoice carries the 13-digit Tax Identification Numbers of both buyer and seller, the transaction date, a description of the goods or services, and VAT shown separately.

VAT and service charge are different things and are applied in a defined order — service charge to the subtotal, then VAT on the result. Treating service charge as another tax line produces the wrong receipt.

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