How to Get a VAT Registration Certificate in Thailand as a Business Owner

When you run a company in Thailand, you need to register for VAT after your company revenue exceeds the amount required by the Thailand Revenue Department.

After you do that, you receive the VAT registration certificate, referred to as the P.P. 20 in Thailand. This is an important certificate that shows the company has registered for VAT and entered the Revenue Department’s VAT system.

Let’s take a look at how to register for VAT in Thailand as a business owner and what you need to do after obtaining it.

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Which Companies Need to Register for VAT?

According to the Thai Revenue Department, any person or entity that supplies goods or services in Thailand on a regular basis and has an annual turnover of more than 1.8 million baht is subject to VAT.

The registration must be completed within 30 days that the threshold is reached.

This simply means that if your company has an annual revenue of more than 1.8 million baht, you must register for VAT within 30 days.

Service is also considered provided in Thailand if:

• The service is performed in Thailand, regardless of where it is utilized
• The service is performed elsewhere and utilized in Thailand

You can register for VAT anytime you want, even if your company’s annual revenue is still below the required amount. Some businesses do this because they want to issue a VAT certificate to their customers.

Tip: Keep in mind that once you are registered for VAT, it’s not easy to cancel your VAT registration. Therefore if you are considering a voluntary registration, do not take the decision lightly. 

VAT Registration Process

You can register for VAT at your local Revenue Department if your company is in Bangkok. If it is outside Bangkok, you must submit the registration to the local Area Revenue Branch Office. You can go there yourself or ask someone to go there on your behalf with the following documents.

• Three sets of the P.P.01 form. This is an application form for VAT registration.
• A housing registration letter showing where the company is located with the signature of the building owner (if renting, you must also give a signed copy of your landlord’s national identification card)
• A copy of the passports, visas, and work permits of company directors with their signatures
• A photograph of company headquarters, including a signboard and inside of the offices
• Rental agreement (for rented premises)
• The company registration certificate.

If you rent an office, your landlord may charge an additional fee for issuing a house registration and other related documents. 

Now, it’s also possible to register online. 

Tip: It’s important to recheck the required documents with your local Revenue Department before going there, as they may have different requirements. Also, keep in mind that most Revenue Department officers can’t speak English, so it’s best to bring someone who can speak Thai with you.

Getting the VAT Registration Certificate

After you submit the document, you need to wait for 5 to 7 working days to pick up your VAT Registration Certificate, known as Por Por 20. It’s an important document. So, always keep it on file.

In addition, the VAT registration certificate must be displayed in your company’s physical location alongside your company registration.

Can I Do It Myself?

If you want to prepare the documents yourself, it can be very challenging as all of the documents are in Thai. 

A better option is to assign a power of attorney by asking your Thai office manager or secretary to do it on your behalf. The whole process is straightforward as long as you have the right documents.

The Revenue Department website has detailed instructions, including all of the documents you need, on this page (only available in Thai language). 

If you want to speed up the process, you can use a local accountant. 

What to Do After Getting a VAT Certificate? 

VAT-registered businesses must perform the following:

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• Charge 7% output VAT on goods and services sold, issuing a tax invoice for each sale, and then remit the VAT collected to the revenue department.
• By the 15th of each month, VAT for the previous month must be submitted using the P.P. 30 form.
• Company purchases are also subject to a 7% input VAT, which can be used to offset sales VAT. You may deduct VAT paid on certain goods and services from the VAT charged and collected. The tax invoice from purchases must be kept by the company as proof of tax credit to be used for deductions.

• You need to withhold tax when paying for a service that is VAT registered, issue a withholding tax certificate, and also file P.P.3 or P.P.53 form. 

In case you don’t file P.P.30 form for more than six months, in a row, your VAT registration will be canceled automatically. And you will also be subject to fines. 

Other helpful links: 

• Thailand Business: Filing a P.P. 30 Value Added Tax (VAT) Return
• Taxation in Thailand: 6 Common Mistakes

VAT Rate

Thailand’s current VAT rate is 7%. An importer is also subject to VAT.

The Customs Department will collect VAT when goods are imported. Certain businesses are exempt from VAT and must instead pay Specific Business Tax (SBT).

Certain types of goods and services are exempt from VAT in Thailand. These include import duty-free goods.

Can I Cancel VAT Registration?

You can cancel your VAT registration under two conditions. It’s when you need to close your business or when your company makes less than 1.8 million baht for three years in a row. 

To do it, you need to file P.P.09 form to your local Revenue Department or file it online. 

Should I Register for VAT?

Everyone can apply for VAT registration even if they make less than 1.8 million baht a year. 

Let’s take a quick look at the pros and cons of having VAT registered.

Pros

• You can claim input tax. This mean you pay less VAT for your company expenses 
• Your company has more credibility
• It gives more business opportunities. There are many companies that need a tax invoice in order to claim tax.  

Cons

• It creates more accounting work because of P.P.30 filing and withholding tax
• The accounting company will charge you more because of extra work 
• Your products or services will be more expensive because of VAT

If you know that your annual revenue is going to be more than 1.8 million baht per year, you must register for VAT. 

Now, on to You

We hope that this article should answer everything you need when it comes to registering your VAT certificate in Thailand. 

It’s important to stress again that you must do it if your revenue is over 1.8 million baht per year. This is one of the common mistakes business owners make in Thailand. 

If you don’t want to do it yourself, using a local accounting company is a convenient way to handle this.