When do you have to register for VAT? The 1.8 million baht threshold
How soon you must register once revenue passes the threshold, what changes every month after registering, and whether to register early.
One of the most common questions from business owners is when they need to register for VAT. The short answer: once revenue from selling goods or services exceeds 1.8 million baht a year. The details around it matter more than people expect.
The threshold
- A business with revenue above 1.8 million baht a year must file for VAT registration (PP 01) within 30 days of passing the threshold.
- It applies to individuals and companies alike, and is based on revenue, not profit.
- Some activities are VAT-exempt by law, such as certain unprocessed agricultural goods, so check whether your business qualifies.
What changes after registering
- Issue a tax invoice for every sale and keep tax invoices from your suppliers.
- Keep monthly output and input tax reports.
- File PP 30 every month, even in months with no sales.
- Decide whether prices add 7% VAT on top or already include it, before you register.
Should you register early?
You can register before reaching the threshold. You can then reclaim input VAT, and VAT-registered business customers usually want tax invoices. The cost is more paperwork every month, and if most customers are individuals, prices with VAT may be harder to compete on.
If you're unsure, look at who your main customers are, how much of your costs carry VAT, and when revenue will reach the threshold. Talking to an accountant before registering helps you set prices and documents up right from day one.
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