Registering for VAT in Thailand: when is it mandatory, and when is it a choice?
Registration becomes mandatory within 30 days of your VATable turnover passing 1.8 million baht in a year; below that it is voluntary. The choice is less free than it looks: customers who need tax invoices and, in practice, visa and work permit files push young companies to register early, while every registration commits you to filing PP 30 every month, sales or no sales, for as long as you stay in the system.
Last reviewed 28 September 2026
The mechanics
The threshold is 1.8 million baht of VATable turnover in a year, and the clock is unforgiving: once you pass it you have 30 days to file the application, form ภ.พ.01, at the area revenue office for your registered address or online. There is no fee. Certain activities are exempt from VAT entirely and do not count toward the threshold; if your revenue is a mix, have your accountant split it before deciding you are under the line.
Once registered you receive the certificate, ภ.พ.20, display it at the place of business, charge output VAT on your sales, and file PP 30 by the 15th of every month, including months with nothing to report. What the certificate and forms are is in the document glossary.
Why companies register before they must
- Customers. Thai corporate customers expect tax invoices, and some purchasing departments will not onboard a supplier without a ภ.พ.20. Being unregistered marks you as small in a way that costs deals.
- Input VAT. An unregistered business absorbs the 7% on everything it buys. A registered one offsets input against output, which matters in a setup year full of fit-out and equipment.
- Visa and work permit files. Immigration and labour officers commonly ask for VAT registration papers and filings in a company’s file for a foreigner. This is described practice rather than a single written rule, but firms in this market treat a VAT registration as part of building a work permit ready company.
What early registration costs you
A monthly obligation with teeth. Every month you must file PP 30 whether you sold anything or not, and the late filing charges accumulate per return. A voluntarily registered company with no revenue is paying its accountant to file zeros, and paying fines when anyone forgets.
Whether VAT filings are inside your bookkeeping fee is one of the first things to check in any quote, because what a monthly fee includes varies more than the fee itself. Three quotes on your actual volumes settle it quickly.
Related questions
- Do I need a physical office, or will a registered address do?
- What happens if you file PP 30 late?
- What is actually included in a Thai bookkeeping fee, and what almost never is?
Sources
- Revenue Department, VAT registration (English)
- DBD, guide to establishing a company limited (Thai, PDF)
This is general information about how a filing works, not accounting or tax advice for your company. Confirm anything that matters against the official notice or with your accountant. Spotted something out of date? Tell us and we will fix it.