Thailand Law Library

by Thailand Lawyer

Value added tax shall be exempt on the following businesses:

1. sale of goods but not for export purpose or provision of services as follows:
1. sale of agricultural products whether they are trunks, branch, leaf, bark, offshoot, root, bud, bulb, pod, seed or other parts of plants and their by- products in fresh or preserved condition in order to temporarily prevent from spoiling during transportation by chilling, frozen means or by other means or preservation to prevent from spoiling for retail sale or whole sale by chilling, frozen, drying , grinding, segmentation method or by other method, white rice or by-product from rice milling but not including wood, firewood or products from wood sawing or food products in can container or package processed on manufacturing basis in accordance with terms and conditions prescribed by the Director-General.
2. sale of alive or dead animals, and in the case of non- alive animal whether it be flesh, parts of animal, egg, milk or by-product from animal in fresh or preserved condition to temporarily prevent from spoiling during transportation by chilling, frozen means or by other mean or preservation to prevent from spoiling for retail sale or wholesale by chilling, frozen, dried, grind, segmentation means, or by other means, but not including food product in can container or package done on manufacturing basis in accordance with terms and condition prescribed by the Director-General;
4. sale of fertilizers;
5. sale of fish meal , animal feed;
6. sale of pharmaceutical or chemical products used on plants or animal for nourishing, preventing, destroying, or eliminating pesticide or disease of plants and animals,
7. sale of newspaper, magazine or school books,
8. provision of educational services of public educational institutions, educational institutions under the law governing private universities or private schools under the law governing private school,
9. provision of services relating to art and cultural work in field and category of business as prescribed by the Director-General with the Minister’s approval,
10. provision of services in medical treatment, accounting, lawyer or other liberal professional services as prescribed by Revenue Department with Minister’s approval and governed by the laws governing such liberal professional services;
11. provision of medical service of health institution under the law governing such health institution;
12. provision of research or academic services as prescribed by the Director- General with the Minister’s approval;
13. provision of services of library, museum, zoo;
14. provision of services under employment contract;
15. provision of services on organizing amateur sports;
16. provision of services by public entertainer as prescribed by the Director- General with the Minister’s approval;
17. provision of domestic transport;
18. provision of international transport excluding transport by aircraft or ship;
19. rental of immovable property;
20. provision of service of local authority excluding commercial services of local authority or service generating income or benefit whether it is infrastructure business or not;
21. sale of goods or provision of services of a ministry, department which remit all revenue to the state without deducting expenses;
22. sale of goods or provision of services for the benefit of religions or public charity in Thailand and profits arising therefrom are not used for other purposes
23. sale of goods or provision of services as prescribed by Royal Decree;
2. import of the following goods;
1. goods specified under (1) (a) to (f);
2. goods from abroad imported into customs free zone but applicable only to goods exempt from import duty under the law governing such matter;
3. goods classified into duty exemption category under the law on customs tariff;
4. goods imported and kept under care of Customs officials, and sent back abroad and import duty has been returned under the customs law;
3. export of goods or services by VAT registrant which is required to pay value added tax under Section 82/16.

In relation with exemption of value added tax under this Section, the Director-General may propose to the Commission of Taxation to determine category of business and conditions for exemption under this Section and when the Commission of Taxation has set the ruling, such ruling shall be published in the Royal Gazette, and if the business is not in accordance w ith category and condition prescribed, such business shall not be exempt from value added tax under this Section.

Business person, carrying on the business of sale of goods or provision of services subject to value added tax and the value of tax base not exceeding that of small business as prescribed by Royal Decree, shall be exempt from value added tax. The Royal Decree under paragraph 1 shall not specify the value of tax base of each type of small business differently, and the value of tax base specified therein shall not be less than 600,000 Baht per annum.

In relation with business exempt from value added tax in this Part or under other laws, business person shall be waived from complying with this Part, but the Director-General may require the business person to prepare report under Part 11.

A business person carrying on the following businesses which are exempt from value added tax, has the right to notify the Director-General, on the form prescribed by the Director- General, of the request to apply for value added tax registration and pay value added tax in accordance with this Chapter in accordance with Section 82/3;

1. sale of goods under Section 81 (1) (a) to (f);
2. small business under Section 81/1; 1 6
3. other business as prescribed by Royal Decree.

When business person under paragraph 1 has registered for value added tax in accordance with Section 85/1 (2), such business person shall be able to cease from paying value added tax if he exercises the right to cancel his value added tax registration under Section 85/10 (3) and the Director-General cancels his value added tax registration.