Date: August 12, 2026

When does my Thai company have to register for VAT?

A Thai company must register for VAT within 30 days of its annual taxable turnover exceeding THB 1.8 million. VAT registration is also required if the company employs foreign nationals, regardless of its turnover. Some businesses also choose to register voluntarily before reaching the threshold.

What We See In Practice

I've just registered my company. Do I need to register for VAT straight away?

WHAT CLIENTS ASK US

Not always. Many new business owners think that VAT registration is required as soon as a company is incorporated, but that isn’t the case. For most businesses, registration only becomes required once the company reaches the annual revenue threshold of THB 1.8 million or hires a foreign employee. However, some companies may choose to register voluntarily so they can recover VAT paid on eligible business expenses and startup costs.

VAT registration becomes mandatory once a company’s annual taxable turnover exceeds THB 1.8 million. The company must apply for VAT registration within 30 days of reaching this threshold. Companies employing foreign nationals are also required to register for VAT, even if they have not reached the annual revenue threshold and would not otherwise be required to register. Once registered, the business must charge VAT where applicable, issue compliant tax invoices, maintain proper VAT records, and submit monthly VAT returns, even during months with no sales or where all of its services are VAT exempt

Registering voluntarily can sometimes be a good idea, even if it is not required. This is particularly true for businesses with significant startup costs, manufacturers, wholesalers, exporters, or companies selling mainly to other VAT-registered businesses, as they can recover VAT paid on eligible business expenses. On the other hand, if you mainly sell to consumers, it may be better to wait until registration becomes mandatory, as adding 7% VAT to your prices can make it harder to stay competitive and also means taking on extra paperwork and monthly VAT filings.

Author: Vincent Birot

Vincent Birot is a French-trained international business lawyer based in Bangkok. He holds a Master’s degree in International Business Law from La Sorbonne and an LL.M in International Commercial Law from the University of Exeter (UK), and has passed the Paris Bar examination. He is the Founder of Belaws, a one-stop platform for legal and corporate matters, facilitating access to trusted legal and business professionals who deliver compliant, practical solutions aligned with local laws and on-the-ground realities. He has advised foreign investors for over 10 years on corporate structuring, BOI promotion, cross-border tax, and regulatory compliance in Thailand. He previously served as Vice President of the Franco-Thai Chamber of Commerce and is a founding member of French Tech Bangkok.