How much income is needed to register VAT?

It is common that the more income we have, the more taxes we have to pay. Today, ACU PAY will take you to observe who meets the criteria to pay the VAT tax. Do not forget to register VAT legally otherwise, you will face the back taxes which are much more than taxes that we have to pay.

Let’s get to know the VAT tax

VAT is an abbreviation for Value Added Tax which is a tax collection from those who earn income from selling goods and services, whether they manufacture or sell goods or services, both domestic sales and imports of goods from abroad. All of these are subject to VAT.

Who is responsible for paying VAT?

People who are responsible for paying VAT tax are all Thai people, including individuals and those who have earned income more than 1.8 million a year which is income not profit (income – expenditure = profit) If the income exceeds 1.8 million a year, it must be registered for VAT according to the law. However, if our income does not exceed 1.8 million a year, we can register VAT as well.

The procedures for VAT registration and the duties to be performed after you within the criteria are as follows:

  1. Registered Por.Por. 01 within 30 days from the date of income exceeding 1.8 million baht.
  2. Prepare entire related documents (You can look it up on the Revenue Department website click)
  3. After registering VAT, we’ll get a document called Por. Por. 20 which is a document of evidence showing the registration of VAT. You should keep the Por.Por. 20 well in case of an investigation by the tax authorities. It will also be used in cases such as loan applications with banks.
  4. Once registered, if there is a sale, a sales tax invoice must be issued. If there is a purchase, a purchase tax invoice must be received, and a summary report must be made.
  5. A Por. Por.30 submission is to pay VAT to the Revenue Department by the 15th of the following month.

What will happen if the revenue exceeds 1.8 million, but does not register VAT?

If we continue to do business or earn more than 1.8 million baht but do not register VAT, we will receive a penalty and fine  the Revenue Department if the income exceeds 1.8 million baht as follows:

  • Imprisonment for not more than 1 month or a fine of not more than 5,000 baht or both.
  • Will be taxed from the date of income exceeding 1.8 million a year.
  • The fine is twice the amount of tax to be paid each tax month.
  • It costs 1.5 % more per month, the remainder of the month is counted as another whole month.
  • The purchase tax that occurred in that month cannot deduct the sales tax.

VAT registration is an important matter that many people may have overlooked. If we keep making a record of income and expenses, we will know whether our income has exceeded 1.8 million or not. 


Once our income reaches 1.8 million a year, we can register back VAT tax within 30 days, or we can calculate our revenue in advance about when our income will reach 1.8 million and register VAT tax as well because if the income exceeds 1.8 million but does not register for VAT, we will be punished as mentioned above.

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