The Cabinet has approved extending the 7% VAT rate for one more year, from 1 October to 30 September 2027, to reduce the impact of living costs and help stimulate consumer spending.
On 27 July 2026, Ms. Ratchada Thanadirek, spokesperson for the Prime Minister's Office, revealed that the Cabinet approved in principle the draft Royal Decree amending the Revenue Code concerning the reduction of the value-added tax (VAT) rate, as proposed by the Ministry of Finance, to extend the VAT reduction measure for an additional year.
Ms. Ratchada stated that the key point of this measure is to extend the reduced VAT rate period, which is set to end on 30 September 2026, by one year—from 1 October 2026 to 30 September 2027. The VAT rate will be temporarily maintained at 6.3% (excluding local taxes) or 7% (including local taxes) for all sales of goods, services, and imports.
"Maintaining the VAT rate at 7% will help reduce the impact of living costs and stimulate consumer spending, which will increase business confidence in the Thai economy and enable domestic private sector investment to grow as planned. It will also help foster a positive business environment for the private sector," Ms. Ratchada said.