10 July 2018
THAILAND: Temporarily-Reduced 7% VAT Rate Extended for 19th Year
The currently-reduced 7% VAT rate is to be maintained until at least the end of September 2019. Previously scheduled to expire on 1 October this year, this marks the 19th time the reduced rate has been retained since it was first introduced in late 1997. At the time, the cut – a 3% reduction from the country’s previous statutory rate of 10% – was billed as a temporary response to the 1997-98 Asian Financial Crisis.
While this most recent extension is set to cost Thailand some Baht 258 billion (US$7.77 billion) in lost revenue, it has been justified as essential for sustaining the country’s economic recovery.