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Thailand to raise VAT to 8% 2015

  • Feb 16, 2015 | Richard Asquith

Thailand to raise VAT to 8% 2015

Thailand has raised the possibility of a 1% VAT rise to 8% in September 2015 if the economy continues to recover.

Following the military takeover in 2014, the economy has turned around, and is now growing by over 2% - the government is targeting 4% GDP growth. VAT revenues are already up over 10% since January 2014 indicating returning consumer confidence.

Thai VAT was 10% until the late 1990’s when the Asian financial crisis hit the region, and the consumption tax was cut to the current 7% to help support the economy. There has been repeated discussion since then of a return to the 10% rate. The current government hopes to achieve this within the next few years. However, it also has an eye on its close economic competitor, Singapore, which has a 7% Goods & Services rate.

VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which won International Tax Review's 2020 Tax Technology Firm of the Year. Richard trained as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.