VAT 7% and withholding tax — 3% services and contract work, 5% rent, 2% advertising, 1% transport — are both calculated on the amount before VAT. See what the customer actually pays.
฿
This amount is
Are you VAT registered?
Withheld by the paying business (company or other legal entity) when it pays you.
Turn this into a tax invoice in GlideQuote — free
Free plan, no card · Pro is free for the first month · iPhone, iPad, Mac and Android
How it is calculated
VAT:VAT = amount before VAT × 7 ÷ 100 · invoice total = amount + VAT — from a VAT-inclusive figure, amount before VAT = total ÷ 1.07.
Withholding tax: the paying business withholds a percentage of the amount before VAT and pays it to the Revenue Department on your behalf. WHT = amount before VAT × rate ÷ 100 · customer pays = invoice total − WHT
Worked example: a ฿10,000 service from a VAT-registered business to a company customer. VAT ฿700.00 → invoice total ฿10,700.00. WHT 3% of ฿10,000 = ฿300.00. The customer transfers ฿10,400.00 and gives you a 50 ทวิ certificate for ฿300.00.
Withholding tax rates
Payment
Rate
Service fees, contract work, hire of work (ค่าบริการ / ค่าจ้างทำของ)
3%
Rent of property
5%
Advertising
2%
Transport (not public transport)
1%
Prizes, lucky draws, competitions
5%
The categories above apply whether the recipient is a company or an individual (thailand.go.th lists both). Professional fees — legal, medical, engineering, architecture, accounting — are also 3%.
Common questions
Is withholding tax calculated on the amount with or without VAT?
On the amount before VAT. For a ฿10,000 service with ฿700 VAT, WHT at 3% is ฿300 — not ฿321.
I am not VAT registered. Is withholding tax still deducted?
Yes. Withholding tax is separate from VAT registration. If the payer is a business and the payment is in a withholding category, it withholds at the rate for that category, and you issue an invoice (not a tax invoice) with no VAT line.
What rate applies to a tradesperson's labour?
3% — the rate for service fees and contract work (hire of work), whether the recipient is a company or an individual.
Where does the withheld money go?
The payer sends it to the Revenue Department on your behalf and gives you a withholding tax certificate (หนังสือรับรองการหักภาษี ณ ที่จ่าย, 50 ทวิ). You credit it against your income tax for the year.
Does a private customer withhold tax?
Generally it is the paying business — a company or other legal entity — that withholds. If you are unsure whether a particular customer must withhold, ask a Thai accountant.
Does the withholding amount go on the tax invoice?
The tax invoice shows the amount before VAT, the VAT and the total. The WHT is usually shown as a note or on the invoice so the customer knows what to transfer; GlideQuote shows both figures.
What GlideQuote does with this
GlideQuote makes Revenue Department-compliant tax invoices (ใบกำกับภาษี) on your phone: VAT 7% and withholding tax 3% worked out for you, PromptPay QR on the document, Buddhist Era dates, Thai or English interface, and your logo and signature on the PDF.
Free plan, no card · Pro is free for the first month · iPhone, iPad, Mac and Android
