Prakhonchai Nick
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The standard rate of VAT is 10%, but the rate is currently reduced to 7% until 30 September 2020 (unless further extended by the government).
VAT is levied on the sale of goods and the provision of services. Exports are zero-rated, while a number of goods and services are exempt (e.g. basic groceries, education, healthcare, interest, leasing of immovable property, sale of real estate)
With the recent massive government handouts to those affected by Covid -19, and the need to recoup this money, I do not anticipate the government keeping the current 7% VAT rate after 30th September next
Whether it will be 10%, or possibly higher remains unknown, as does whether any increase will be notified as effective immediately or whether notice will be given.
For anyone contemplating a largish purchase. I would recommend that this be done before 30th September next. With a 10% Vat rate a new car or pick-up, for example, will cost upwards of 20,000Baht more!
VAT is levied on the sale of goods and the provision of services. Exports are zero-rated, while a number of goods and services are exempt (e.g. basic groceries, education, healthcare, interest, leasing of immovable property, sale of real estate)
With the recent massive government handouts to those affected by Covid -19, and the need to recoup this money, I do not anticipate the government keeping the current 7% VAT rate after 30th September next
Whether it will be 10%, or possibly higher remains unknown, as does whether any increase will be notified as effective immediately or whether notice will be given.
For anyone contemplating a largish purchase. I would recommend that this be done before 30th September next. With a 10% Vat rate a new car or pick-up, for example, will cost upwards of 20,000Baht more!