VAT for rental management companies in Thailand: what to charge, register and reclaim
A rental management company in Thailand must register for VAT within 30 days of its taxable turnover passing 1.8 million THB a year, then charge 7% on its taxable services and file a PP.30 every month. The harder questions are which income counts. Your management fee is taxable. Room income may or may not be yours to tax, depending on whether you let units in your own name with hotel-style services or act for the owners. And Agoda's commission carries 7% VAT one way or another. Information as at 4 November 2026.
Key takeaways
- Register for VAT (form ภ.พ.01, P.P.01) within 30 days of taxable turnover passing 1.8 million THB a year. Below that you may not charge VAT or issue tax invoices.
- Management fees are a taxable service. A Revenue Department ruling also treated a company that let owners' condo units in its own name, with cleaning and other services, as a hotel-like business taxable on all its room income.
- VAT stays at 7% until 30 September 2027 under Royal Decree No. 807, published on 23 August 2026.
- Agoda adds 7% VAT to its commission for non-VAT-registered Thai properties. VAT-registered businesses self-assess it with a P.P.36 and can use it as input tax.
- PP.30 is due by the 15th of the following month, or the 23rd if filed online, under an extension that covers returns due up to 31 January 2027.
When a management company has to register
The Revenue Department's rule is short: a business that regularly supplies goods or services in Thailand with annual turnover over 1.8 million THB is subject to VAT, and must register before it starts trading or within 30 days after its income reaches the threshold. The application is form ภ.พ.01 (P.P.01), filed through the Revenue Department's e-service system.
Until you are registered, you may not add VAT to invoices or issue tax invoices. Once you are, you charge VAT on every taxable supply, not just the amount above the threshold.
What is VAT-able for a management company
VAT follows what you actually supply and to whom. Two Revenue Department rulings mark out the main cases.
| Income | Treatment | Source |
|---|---|---|
| Management fee charged to owners | Taxable service at 7% | Ruling กค 0702/8847 (2013): the 2% management fee was a service under section 77/2(1) |
| Room income where the company lets units in its own name and provides cleaning, laundry, internet and utilities | Taxable. Treated as a business similar to a hotel; VAT on rent and services combined | Ruling กค 0702/8847: service under section 77/1(10), taxable under section 77/2 |
| A plain lease of a building or unit, possession handed over | Exempt | Ruling กค 0702/6328 (2009): immovable property rental exempt under section 81(1)(ต) |
| Furniture, amenities or utilities supplied with a lease | Taxable, even if billed with the rent | Ruling กค 0702/6328 |
Own name or the owners' agent
In ruling 8847 the Revenue Department stressed that the company did not act as the owners' agent but in its own name: it collected rent and service charges from guests directly, so all of it was the company's income, and the payments to owners were rent the company paid out, with 5% withheld. Many Thai managers instead act for the owner and keep a fee. Which model you run depends on your contracts, how you invoice guests and whose name is on the channel accounts. It decides your VAT turnover, so settle it in the management agreement and with your accountant.
The same distinction affects owners. A law firm's tax guide for Airbnb says hosts who do not hand over possession, or who add cleaning or laundry, are likely to be treated as running a hotel-like business and must register once their revenue passes 1.8 million THB. See tax on Airbnb rental income for the owner's side.
The 7% rate, now to 30 September 2027
The Cabinet approved keeping VAT at 7% for another year on 27 July 2026, and Royal Decree No. 807 was published in the Royal Gazette on 23 August 2026. It applies from 1 October 2026 to 30 September 2027. Nothing changes on invoices for now, but contracts that run past September 2027 should say how a rate change is handled.
VAT on Agoda and other OTA commissions
Since 1 September 2021, foreign platforms that earn more than 1.8 million THB a year from electronic services to non-VAT-registered customers in Thailand must register, charge and remit Thai VAT. The Revenue Department's guide lists commission fees to intermediaries among those services. Where the customer is VAT-registered, the reverse charge applies instead: the customer remits the VAT itself on form P.P.36, and that VAT can be used as input tax only for its VAT-able business.
| Your status | What Agoda does | What you do |
|---|---|---|
| Not VAT-registered | Adds 7% VAT to its commission and remits it to the Revenue Department | Nothing to file; the VAT is a cost you cannot reclaim |
| VAT-registered | Does not add VAT once you have given it your 13-digit VAT ID | Self-assess 7% on the commission on a P.P.36, then claim it as input tax |
The P.P.36 is due within 7 days after the end of the month in which you paid the fee, or by the 15th of the following month if filed online. If the channel accounts are in the owners' names rather than yours, the commission is the owner's cost and their VAT position applies. Our Agoda, Airbnb and Booking.com comparison shows what this does to a payout.
Tax invoices: the basics
A VAT-registered business issues a tax invoice for each taxable transaction. The Revenue Department lists what it must show:
- The words "Tax invoice", in a prominent place.
- Your name, address and tax identification number.
- The customer's name and address.
- A description, quantity and value of the service.
- The VAT amount, shown separately.
- The date of issue.
For services, the VAT point is when payment is received or the tax invoice is issued, whichever comes first. If you take your fee out of owners' money each month, ask your accountant when that counts as payment, so the tax invoice and the owner statement line up. Write into every management agreement whether the fee percentage is plus VAT or VAT-inclusive; the worked example shows what that choice is worth.
Monthly filing calendar
| Return | What it covers | Paper deadline | Online deadline |
|---|---|---|---|
| PP.30 | Output VAT less input VAT for the month | 15th of the following month | 23rd of the following month |
| P.P.36 | Reverse-charge VAT on services from abroad, such as Agoda's commission | 7 days after the end of the month of payment | 15 days after the end of the month of payment |
| PND 3 | Tax withheld from payments to individuals, including 5% on rent paid to owners | 7th of the following month | 15th of the following month |
If input VAT is larger than output VAT in a month, the Revenue Department allows a cash refund or a credit carried forward. Keep supplier tax invoices with the month they belong to; without them the input VAT cannot be claimed.
Worked example: one month's fee and VAT
A VAT-registered Phuket management company runs 18 villas for their owners as agent and charges 20% of booking revenue after OTA commission, plus VAT. The company holds the Agoda account. December 2026 looks like this:
| Line | Fee plus VAT | Fee VAT-inclusive |
|---|---|---|
| Booking revenue, all channels | 2,400,000 | 2,400,000 |
| OTA commissions | −330,000 | −330,000 |
| Fee base | 2,070,000 | 2,070,000 |
| Management fee charged to owners (20%) | 414,000 + 28,980 VAT | 414,000 including 27,084 VAT |
| Company's fee revenue | 414,000 | 386,916 |
| Output VAT | 28,980 | 27,084 |
| Input VAT on Agoda commission of 120,000 (self-assessed on P.P.36) | −8,400 | −8,400 |
| Input VAT on supplies and services bought (90,000 + VAT) | −6,300 | −6,300 |
| VAT payable on the PP.30 | 14,280 | 12,384 |
The VAT-inclusive column is the expensive one for the company: the same 20% leaves it 27,084 THB less fee revenue in the month, about 325,000 THB over a year at this level. Owners see a 20% fee either way, so the wording of the agreement decides who bears the VAT.
Where Propool fits
Propool does not file VAT returns or issue tax invoices; those stay with your accountant. It gives them clean inputs. Each owner statement shows gross income from every stay and the management fee, cleaning and adjustments configured for that property, line by line in baht, and is locked once issued. Each unit's Money tab holds its bills and receipts. Airbnb, Booking.com and Agoda reservations come in through direct connections, so the revenue your fee is based on matches the channels. See owner statements in Propool and the channel manager.
Questions
When does a rental management company in Thailand have to register for VAT?
When its taxable turnover passes 1.8 million THB a year. It must apply on form ภ.พ.01 within 30 days of reaching the threshold, or can register before trading starts.
Is VAT charged on a property management fee in Thailand?
Yes, if the management company is VAT-registered. The Revenue Department treats a management fee as a taxable service, so 7% applies until 30 September 2027.
Is short-term rental income subject to VAT in Thailand?
A plain lease of immovable property is exempt. A business similar to a hotel, for example letting units in its own name with cleaning and other services, is taxable once it passes the 1.8 million THB threshold.
Why does Agoda charge me 7% VAT on its commission?
Under Thailand's e-Service VAT rules, Agoda charges 7% VAT on commission to Thai properties that are not VAT-registered. If you are VAT-registered, give Agoda your 13-digit VAT ID and self-assess the VAT on a P.P.36 instead.
When is the PP.30 VAT return due?
By the 15th of the following month on paper, or the 23rd if filed online under the current e-filing extension, which covers returns due up to 31 January 2027.
Product guides
Sources
- Value added tax
- VAT forms and e-services, including ภ.พ.01 registration
- Ruling กค 0702/8847: serviced-apartment rental and management fees
- Ruling กค 0702/6328: building leases, furniture and parking
- A guide on VAT on electronic services (second edition)
- VAT implication for Thailand properties
- Thailand: tax considerations on short-term rentals
- Cabinet approves extension of the 7% VAT rate to 30 September 2027
- Royal Gazette publishes Royal Decree No. 807 keeping the reduced VAT rate
- Tax newsletter: e-filing deadlines extended for returns due 1 February 2024 to 31 January 2027
- Extension of filing deadlines for returns filed online
- PND 3 and PND 53: what is the difference