Value Added Tax (VAT) is an indirect tax imposed on the sale of goods and services. The standard rate is 7%. Business operators with annual income exceeding 1.8 million THB are required to register for VAT. 
 
✔️ Who must register for VAT? 
– Companies and partnerships with annual income exceeding 1.8 million THB from sales or services 
– Freelancers with income above the threshold engaged in taxable activities 
– Businesses involved in international trade may need to register for proper compliance 
 
✔️ Consequences of not registering for VAT: 
– Cannot issue VAT invoices 
– Business clients cannot claim tax credits 
– Risk of retroactive audits and penalties 
 
A good accounting firm will guide you through the VAT registration process from the start, ensuring compliance with your specific business type and avoiding costly tax issues.