Thailand keeps the effective 7% VAT rate through 30 September 2027

The extension is now set in law

Royal Decree No. 807 was published in the Royal Gazette on 23 August 2026 and listed by Thailand's Revenue Department on 24 August. It takes effect on 1 October 2026 and moves the end of the reduced-rate period from 30 September 2026 to 30 September 2027.

The decree itself states a 6.3% VAT rate under the Revenue Code, while the effective standard rate paid in practice remains 7%. The practical point is that there is no rate jump on 1 October 2026: the existing reduced regime continues for another year rather than being replaced by a new tax rate.

The extension covers VAT-liable sales of goods, services and imports. That does not make every transaction subject to 7%, because Thailand also has zero-rated and VAT-exempt supplies.

What it means for household and business planning

For residents and people preparing for a longer stay, the immediate effect is stability rather than a new saving. There is no basis to build a general VAT increase into October 2026 living-cost estimates simply because the previous extension was due to expire at the end of September.

Businesses may have more practical work to do. Pricing, contracts, point-of-sale systems or forecasts that assumed the reduced rate might lapse on 30 September 2026 should now use 30 September 2027 as the confirmed end date. Decree No. 807 does not decide what happens after that point, so a further extension should not be treated as guaranteed in advance.

The headline rate also does not answer every tax question on its own. Whether VAT applies to a particular transaction, and when the liability arises, still depends on the nature and timing of that transaction.

The 7% headline does not reduce property-transfer taxes

For a property buyer, the most important distinction is that this VAT extension is not a general discount on the cost of acquiring real estate. Thailand tax summaries list the sale of real estate and the leasing of immovable property among VAT-exempt transactions, while property transfers can involve other taxes and registration charges governed by separate rules.

That means Decree No. 807 does not automatically reduce transfer fees, specific business tax, withholding tax or stamp duty on a purchase or sale. Which of those items applies depends on the transaction and the parties involved. The extension is therefore more relevant to taxable goods and services in day-to-day life and business operations than to the tax calculation used to register ownership of a home or investment property.