How to Avoid Paying VAT When Buying a Used Car

Thailand’s 7% VAT adds THB28,000 to a THB400,000 used car. Who sells it and how you pay decide whether you owe it, and a cash deal with a private owner skips it legally.

One of the main reasons used cars are so expensive in Thailand is Value Added Tax, or VAT.

The current VAT rate in Thailand is 7%. This means if a used car costs THB400,000, you pay THB28,000 in VAT. (Verified September 2026.)

However, there’s a way to avoid paying VAT when buying a used car.