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What is the difference between registering for VAT and not registering? A comparison of the impacts on businesses.

  • Writer: Thanuwat Khumkainam
    Thanuwat Khumkainam
  • Jun 8
  • 2 min read

Registering for VAT (Value Added Tax) is important for businesses to comply with Thai tax laws. However, many people may wonder what the differences are between registering for VAT and not registering. This article will compare the differences, advantages, disadvantages, and business impacts to help you make the right decision.


What is VAT registration?


VAT registration means registering for Value Added Tax with the Revenue Department. Businesses with annual revenue exceeding 1.8 million baht are required by law to register for VAT, while businesses with lower income can choose to register voluntarily.


What is the difference between registering for VAT and not registering? A comparison of the impacts on businesses.
What is the difference between registering for VAT and not registering? A comparison of the impacts on businesses.

5 Key Differences Between “Registering for VAT” and “Not Registering for VAT”

  1. Tax Burden and VAT Refund Rights

    Registering for VAT: Can charge customers 7% VAT and deduct VAT paid to suppliers as tax credit.

    Not Registering for VAT: Do not charge VAT but bear the full VAT cost on purchased goods/services.

  2. Business Credibility

    Registering for VAT: Increases credibility when dealing with large companies or government agencies.

    Not Registering for VAT: May be perceived as a small-scale business.

  3. Accounting Documentation

    Registering for VAT: Must issue tax invoices and file VAT reports monthly.

    Not Registering for VAT: Simpler accounting with no requirement to file VAT reports.

  4. Additional Costs

    Registering for VAT: Incurs costs for accounting systems and tax consulting.

    Not Registering for VAT: Saves on system management costs.

  5. Business Opportunities

    Registering for VAT: More chances to get contracts from clients who require tax invoices.

    Not Registering for VAT: May lose customers in this segment.


When Should You Register for VAT?

Although businesses with revenue below 1.8 million baht are not required to register for VAT, registering early can help prepare for business growth and create a professional image.


The decision to register for VAT or not depends on the size of the business, expansion plans, and target customer groups. For sustainable growth, registering for VAT can help reduce tax burdens and increase business opportunities in the long run.

Registering for VAT or not can be a crucial turning point for your business. If you’re still uncertain or want to be confident that you’re choosing the right path both legally and for tax benefits, don’t let doubt become a risk.


Consult the experts at iACC Professional today. We’re ready to provide professional advice, plan your taxes correctly, and manage your accounting comprehensively. Contact us now to start your business with confidence.


📞 Phone: 086-345-0265


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