VAT refund in Thailand: A complete guide to tax-free shopping in Thailand

Travelling to Thailand from the UK? Well, get ready to be welcomed by the friendly and hospitable Thai people! The Land of Smiles is more than just a stunningly beautiful country; it is also a goldmine of history and culture. From the bustling metropolis of Bangkok to the endless beachside in Phuket, there are endless activities to do and places to visit once you set foot in Thailand. It's no surprise that many British have fallen in love with the country and have chosen to visit more than once despite its long distance.

And while shopping in Thailand, you may discover that you're required to pay a VAT. The good news is that the VAT in Thailand is relatively lower than in the UK and many other European countries. Even better, Thailand offers a VAT refund scheme for tourists, allowing you to easily claim back your tax. This article will be a comprehensive guide to help you navigate the VAT refund process in Thailand, so you can save more money to cross your next destinations off your bucket list.

There is one more way to help you save even more, use a Wise debit card to receive your refund! More on that later!

How much is VAT in Thailand?

VAT for tourists in Thailand is straightforward with a general rate of 7% for most goods and services. You will see this tax rate on many goods and services you are purchasing.

You might sometimes see the rate of zero percent as well. This means your goods and services are in the taxable category, but at a rate of 0%. This rate is applied to these goods and services¹:

• Exported goods and services;
• Services rendered in Thailand, but wholly consumed in other countries;
• International aircraft or sea-going vessel transport services;and
• Supply of goods or services between bonded warehouses or between enterprises located in a free-trade zone.

How much VAT is refunded in Thailand?

Technically, the VAT refund in Thailand mostly works in tiers. For instance, if you have a single receipt for 2,100 THB, you will receive a refund of 80 THB. If your total purchase at one store amounts to 51,000 THB, you will be eligible for a refund of 2,710 THB. And if you are spending at least 200,000 THB, you will get back 6.1% of the purchase value.

You can refer to the VAT Refund Table provided by the Revenue Department below²:

It is worth pointing out, though, that hefty administration fees are coming along with getting your VAT refund in Thailand. Additionally, there will be extra charges based on the payment method you choose to receive your money. So the actual amount you’ll receive might be different. We’ll talk about the fees later on.

Who is eligible for tax free shopping in Thailand?

You will be able to join the tax refund scheme for tourists in Thailand if you meet these requirements³:

• You are neither a Thai national nor legally staying in Thailand for an extended period;
• You are not a airline crew member who is on duty;
• You must take the goods in your personal luggages within 60 days from the date of purchase; and
• Your purchase must cost at least 2,000 THB, including VAT. A “purchase” is defined as an item or a set of items bought on the same day from the same store.

How to get VAT refund in Thailand?

The VAT is 7%, and the lowest amount you need to buy is 2,000 THB. You are ready to claim your VAT back. However, there are a few simple steps you need to do before getting your VAT refund in Thailand.

Your VAT refund in Thailand journey actually begins as soon as you arrive in the country. So, how to go about claiming your VAT refund in Thailand:

Receive a tax exemption form

Before making any purchases, you need to be aware that not all of the stores are participating in this scheme. In fact, many of the local markets or smaller stalls are outside this scheme. You will not be qualified for Thailand's VAT Refund for Tourists program for the goods you purchase from these stores. And you cannot claim back VAT on services either.

Therefore, before you make any purchases, look out for the "VAT REFUND FOR TOURISTS" sign. You can also simply ask the store assistant if the store is on the VAT refund scheme in Thailand.

The store assistant will issue a VAT Refund Application for Tourists form (P.P.10) and your original tax invoices for the purchase. They might also ask you to present your passport. So, always be prepared and have your passport with you when you're shopping in Thailand.

Have the forms stamped

One thing you need to note is that you can claim a VAT refund in Thailand only at an international airport. If you depart from Bangkok, you can do your VAT refund at the international terminal at Suvarnabhumi or Don Mueang International Airport.

At the airport, go straight to the VAT Refund for the tourist office before you check in for your flight. If the total value of your goods is at least 20,000 THB, you will be asked to present the goods and the VAT Refund Application for Tourists form (P.P.10). So you should put them in the location where you can quickly grab them. If your goods are consumable, you have to seal your goods along with the label ‘No Consumption Made While in Thailand’. After inspecting your goods, the Customs officer will stamp and sign at the lower right-hand corner of your P.P.10.

Make sure to double-check your paperwork before heading to the check-in counter and immigration checkpoint.

Another important note to take is that if you are buying goods in the luxury category (such as jewellery, gold, ornaments, watches, eyeglasses, pen, mobile or smartphone, laptop or tablet, handbag, and/or belt, of which the value is at least 40,000 THB per items) or carry-on goods that cost at least 100,000 THB per item, remember to hand carry them with you when you go through immigration checkpoint. Customs officers will need to recheck them at the VAT Refund for Tourists Office. If you fail to show the goods, your Thailand VAT refund might be declined.

Obtain a VAT refund

Here’s the most exciting part of the whole process: getting back your VAT refund in Thailand!

Depending on the amount of your tax refund, you can choose your preferred method to receive your money back. If your requested tax refund does not exceed 30,000 TBH, you can receive it in cash (THB), digital wallet, or through your credit card. When your VAT refund in Thailand is more than 30,000 THB, you can only choose between a draft or through a credit card.

But you should be aware that there are also extra fees to receive your VAT refund in Thailand, depending on the chosen payment methods and the distance to your hometown. If you are from the UK, you will be charged approximately of either:

• For bank drafts (only available in USD, EUR, GPB, and Yen): 103 THB transaction fees (charged by the bank)+ 109 THB postage fees.
• For credit card: 107 THB transaction fees + 17 THB postage fees + conversion rate (if applicable)

If you choose to receive your VAT refund through your credit card, and the denominated currency of the card (e.g., GBP) is different from the local currency (e.g., THB), it may be converted automatically. Usually, your card provider chooses the conversion rate, typically with a hidden mark-up. But don’t worry, you can minimise costs on currency conversion, consider receiving your refund with a Wise debit card, which only charges a small fee and converts at mid-market rates without markups and allows you to hold 40+ currencies, including THB.

Learn more about Wise card

You can also use this guide hand-in-hand with the strategy to use cash or card in Thailand to save even more!

And that’s it - your complete guide on how to do tax-free shopping in Thailand for Brits! The whole process is quite hassle-free, just make sure you arrive at the airport early so you don’t need to rush through the process.

Read this article when you are planning the next trip visiting Thailand! After reading this, you should have a better grip on how the Thailand VAT refund system all works, and be ready to make the most out of your shopping experience! And, if you want to save, with a Wise Debit Card, you can save even more money for your next adventure! Order your Wise card for a one-time fee of 7 GBP today!

Get your card now

Please be aware that tax regulations and procedures may change over time. Always verify the information with official sources for the most accurate and up-to-date guidance.

Sources used for this article:

Sources last checked on 14-Jul-2024.