After the Cabinet meeting on the 27th, Thai Government Spokesperson Rachada revealed to the media that the meeting reviewed and approved a proposal submitted by the Ministry of Finance to further extend the current 7% Value Added Tax (VAT) preferential rate for another year, aiming to ease people’s living cost pressures and promote domestic consumption.
According to a China News Service report, under this measure, the implementation period for the preferential VAT rate originally set to expire on September 30, 2026, will be extended for another year until September 30, 2027. Specifically, the VAT rate excluding local taxes is 6.3%, and after adding local taxes becomes 7%. This applies to all product sales, service provision, and importation stages.
Rachada stated that maintaining the 7% VAT rate helps alleviate the public’s burden while boosting market confidence in consumption.
On July 5, 2024, the Thai government canceled the previous tax exemption policy for cross-border e-commerce goods with a declared value below 1,500 Baht, and for the first time unified the imposition of 7% VAT on all goods.
The statutory standard VAT rate in Thailand is 10%, with 7% being a temporary preferential rate. On September 9, 2025, the Thai Cabinet officially decided to extend the period of the 7% rate by another year, with the implementation period running from October 1, 2025, to September 30, 2026, to avoid an automatic rate hike back to 10% once the current policy ends.