Thai VAT and withholding tax

Both may appear in one transaction, but they are separate mechanisms whose bases, rates and party obligations must be checked independently.

VAT relates to the sale or service amount

The VAT tool adds or removes tax at a user-entered rate. It does not select the legal rate, determine registration, or calculate monthly net VAT. See Thai Revenue Code sections 80–82 for primary context on liable persons and output/input tax.

Withholding applies when qualifying income is paid

The payer retains and remits an amount when the parties and income meet applicable conditions. The Revenue Department's section 3 ter withholding notice shows that payer, recipient, income category and rate vary. A sample 3% must not be applied to every payment.

A practical order

First identify the goods/service base and VAT. Then determine whether the income, payer and recipient trigger withholding. Only then calculate the withheld amount and transfer amount. Tool examples explain arithmetic and do not classify income.

Calculate VAT · Estimate withholding using a verified rate · Prepare 50 Tawi information

Content and sources checked 11 September 2026