The VAT on almost every Thai receipt is 7%, but there are two different calculations: adding VAT to a price, and extracting VAT from a price that already includes it.
For an instant answer with every step shown, use the Thai VAT calculator.
Why 7%?
Under the Revenue Code the VAT rate is reduced temporarily by royal decree. The latest, No. 807 B.E. 2569 (Royal Gazette, 23 August 2026), keeps it at 6.3% until 30 September 2027. The Revenue Department also collects local tax of one ninth of that (0.7%), giving 7%.
Adding VAT (price excludes VAT)
| Step | Formula | Example: 1,000 baht |
|---|---|---|
| 1. VAT | price × 7 ÷ 100 | 70.00 |
| 2. Total | price + VAT | 1,070.00 |
Extracting VAT (price includes VAT)
Multiplying the total by 7% is wrong: the total is 107% of the pre-VAT price, so VAT is 7 parts in 107.
| Step | Formula | Example: 1,070 baht |
|---|---|---|
| 1. VAT | total × 7 ÷ 107 | 70.00 |
| 2. Price before VAT | total − VAT | 1,000.00 |
Rounding to the satang
Order P.86/2542 says to look at the third decimal place of the VAT: below 5, drop it; 5 or more, round up. Its own examples: 100 baht → 6.542… → 6.54; 180 baht → 11.775… → 11.78.
Our calculator rounds the VAT first and derives the other figure from it, so both always add up to the total exactly.