glossaryLive
What is VAT?
VAT is value-added tax that needs reviewable input and output tax separation.
Thai SME owners and Thai accountantsLast updated 2026-07-21
How input tax differs from output tax
Why input and output tax need to stay separately reviewable
How is the 7% VAT calculated — is it included in the price or added on top?
It depends on how the price is displayed. If the listed price says "VAT included," back-calculate VAT from that price (price ÷ 1.07 × 0.07). If the listed price is before VAT, add 7% when issuing the tax invoice. VAT-registered sellers should state clearly whether the displayed price already includes VAT to avoid confusing customers.