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Global VAT Comparison: Is Thailand Ready for 10% VAT?

Global VAT Comparison: Is Thailand Ready for 10% VAT?

Thansettakij•Economy•1d ago

Reader Briefing

Thailand is considering a VAT structure adjustment to enhance revenue collection and national competitiveness, drawing parallels with global VAT strategies.

  • •Global VAT strategies vary, focusing on public services, defense, economic stimulus, and reduced rates for essential goods.
  • •Thailand's potential VAT reform aims to increase government revenue and improve its regional competitiveness.
  • •The article cites several sources and reports from 2025 and 2026 discussing global VAT rates and policies.

Overview

  • •Global VAT strategies are diverse, with some countries using higher rates to fund public services and welfare programs.
  • •Estonia, for example, plans to increase its VAT rate to fund national defense initiatives, labeling it a 'Defense Tax'.
  • •Some nations implement VAT reductions or exemptions on essential goods and services to support lower-income citizens and stimulate consumption.
  • •The United Nations Department of Economic and Social Affairs has published guidance on VAT for developing countries.
  • •PwC's global tax summaries provide data on VAT rates worldwide as of 2026.
  • •Fintua's analysis from January 15, 2026, offers an international VAT rate roundup.
  • •VATUpdate reported on global VAT rates (standard and reduced) in 2026.
  • •For Thailand, the signals for VAT restructuring are aimed at improving state revenue collection efficiency to fund national development and enhance regional competitiveness.

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Source: Thansettakij (Original)

Key Entities

Place

Thailand(ไทย)ℹ️
The country considering a VAT rate adjustment to increase revenue and competitiveness.
Estonia(เอสโตเนีย)ℹ️
A country planning to increase VAT to fund defense initiatives.

Organization

ASEAN(อาเซียน)ℹ️
The Southeast Asian regional bloc mentioned for VAT comparison with Thailand.
OECDℹ️
An organization where consumption taxes, including VAT, constitute a significant portion of government revenue.
PwCℹ️
A firm that published a data table on Value-added tax (VAT) rates, referenced for the year 2026.
Fintua
A source that published an article on 'International VAT rate round up' dated January 15, 2026.
United Nations Department of Economic and Social Affairs, Financing for Sustainable Development Officeℹ️
A United Nations office that published guidance on VAT for developing countries.
VATUpdate
A platform that provided information on global VAT rates for standard and reduced rates in 2026.
Thansettakij
A publication that ran an article comparing Thai and ASEAN VAT rates, referencing December 4, 2024.
Tax Foundationℹ️
An organization that published an overview of 'Consumption Tax Policies (VAT, Sales Taxes, Excise Taxes)' updated on February 11, 2025, originally dated January 26, 2021.

Law

Consumption Tax Policies (VAT, Sales Taxes, Excise Taxes) — Global Overview
A report or policy overview concerning global consumption taxes, updated on February 11, 2025.
Value-added tax (VAT) rates
A data table from PwC Worldwide Tax Summaries detailing VAT rates, referenced for 2026.
International VAT rate round up: January 2026
An article compiled by Fintua, providing a summary of international VAT rates in January 2026.
UN Guidance Paper Series on Value Added Taxes/Goods and Services Taxes for Developing Countries
A publication by the United Nations offering guidance on VAT/GST for developing nations.
Global VAT rates by country 2026: Standard and reduced rates
A report from VATUpdate detailing global VAT rates for 2026.