Oct 2024 VAT rise postponed again; Oct 2025 potential next date
The Thai cabinet on 17 September 2024 confirmed that the scheduled rise in VAT from 7% to 10% will not go ahead on 1 October 2024.
VAT was cut from 10% to 7% in 1999, with a return to 10% rolled over numerous times (see below).
The economy has recovered strongly from the effects of COVID, and the Ministry is keen not to add to the effects of inflation. The Finance Ministry forecast economic growth of 3.5 per cent this year looks likely to turn out at 2.4%. So the Cabinet is keen not to dampen this figure further as exports have failed to takeoff. This latest extension aims to mitigate the impact of living costs, stimulate consumer spending and boost business confidence in the Thai economy.
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Longstanding VAT rise regularly postponed
Whilst the typical regional rate for South East Asia is 10% or above, Thailand has tax competition with the city-state of Singapore, which has a similar rate on its Goods and Services Tax rate:
- Indonesia – 11% (Indonesia VAT rise 2024)
- Philippines – 12%
- Vietnam – 10%
- Singapore – 7% (Singapore raises VAT to 9% 2024)
- Malaysia – 10%
VAT Calc’s global VAT and GST rates checker provides live indirect tax rates from around the world.
