Cabinet approves one-year extension of 7% VAT until September 2027
Thailand’s Cabinet has approved a one-year extension of the 7% VAT rate from October 1, 2026, to September 30, 2027, to ease living costs and support economic stability.
The Cabinet has approved the extension of Thailand’s reduced value-added tax (VAT) rate of 7% for another year, effective from October 1, 2026, to September 30, 2027.
The measure is intended to ease living costs, support household consumption and strengthen confidence among businesses.
Government Spokesperson Rachada Dhnadirek said on Monday that the Cabinet had approved in principle a draft royal decree issued under the Revenue Code on VAT rate reduction, as proposed by the Finance Ministry.
She said the measure would extend the reduced VAT rate, which was due to expire on September 30, 2026, for another year.
Under the extension, the VAT rate will remain temporarily at 6.3%, excluding local tax, or 7% including local tax, for all sales of goods, services and imports.
“Maintaining VAT at 7% will help reduce the impact of living-cost pressures and stimulate public consumption,” Rachada said.
“This will help the business sector maintain confidence in the Thai economy and allow private domestic investment to expand in line with targets, while also supporting a favourable environment for private-sector operations.”
