Withholding Tax and VAT Calculator

Value Added Tax (VAT) is an indirect tax levied on the sale and purchase of goods and services. The seller collects the tax from the buyer and remits it to the Revenue Department. Currently, the VAT rate in Thailand is 7%.

Businesses with annual sales revenue exceeding 1.8 million Baht are required to register for Value Added Tax (VAT) with the Revenue Department.

There are two main scenarios for calculating VAT:

• When the price does not yet include VAT: VAT = Product Price × 7%

• When the price already includes VAT: VAT = (Price Including VAT × 7) ÷ 107 This formula is used when you need to separate the VAT amount from a price that already has the tax included.

When the price of a product includes VAT, the actual VAT calculation requires the formula: (Price including VAT × 7) ÷ 107. This is because 107 represents 100% of the product's price plus 7% for VAT.

Certain goods and services are exempt from Value Added Tax, such as fresh food, medical expenses, tuition fees, and house rent, to alleviate the tax burden on consumers, especially low-income households.

Effective January 1, 2025, imported goods valued between 1 and 1,500 Baht (including shipping and insurance costs) will be subject to Value Added Tax (VAT), as announced by the Ministry of Finance and the Customs Department.

You can use the formula:

Price Before VAT = Price Including VAT ÷ 1.07

For example: If a product's price including VAT is 1,070 Baht → Price Before VAT = 1,070 ÷ 1.07 = 1,000 Baht.

It is necessary when separating the tax amount for accounting purposes, such as recording sales figures excluding VAT in financial reports or issuing separate tax invoices.