Articles | Updated 21 October 2026
Quotation with 3% withholding tax: is it needed, how to calculate
It is not required. A quotation is not a tax document, and withholding happens when the customer actually pays, by the customer. If the customer is a company, it still helps to add a line showing the amount after 3% is withheld, so they prepare the right amount and you are not surprised when less than the full total arrives
Four rules
- The payer withholds, not the seller, and only when actually paying
- It is worked out on the amount before VAT, not the bill total
- The payer issues a 50 Tawi certificate to the seller every time tax is withheld
- The seller uses the withheld tax as a credit in the annual income tax return, so keep every certificate
Example: a 50,000 baht service quotation
The seller is VAT registered and the customer is a company
Add a note under the total: the total is before withholding tax, and a juristic buyer withholds 3% of the amount before VAT
Service charge
Amount (THB): 50,000.00
VAT 7%
Amount (THB): 3,500.00
Grand total
Amount (THB): 53,500.00
Withholding 3% of 50,000
Amount (THB): -1,500.00
Amount the customer pays
Amount (THB): 52,000.00
| items | Amount (THB) |
|---|---|
| Service charge | 50,000.00 |
| VAT 7% | 3,500.00 |
| Grand total | 53,500.00 |
| Withholding 3% of 50,000 | -1,500.00 |
| Amount the customer pays | 52,000.00 |
A quotation with both goods and services
Withhold only on the service part. For example, shelving 40,000 baht and installation 5,000 baht: the customer withholds 3% of 5,000, which is 150 baht. If installation is not shown separately, the whole quotation counts as a sale of goods and nothing is withheld
Customers paying through e-Withholding Tax: only 1%
From 1 January 2569 to 31 December 2570, according to Revenue Department news 14/2569. The bank sends the data to the Revenue Department and the customer does not issue the certificate themselves
How to do it in the app
In GORINY, issue the quotation and invoice for the full amount. When you record a payment the customer withheld tax from, tick that tax was withheld. The system books the withheld tax separately, clears the receivable in full and includes it in the withholding tax received report for your year-end return. You can add the certificate number later
Frequently asked questions
- Can we raise the price to make up for withheld tax?
- You should not. Withheld tax is not lost money. The seller uses it as a credit in the annual income tax return
- Does it apply when the customer is an individual?
- No. The duty to withhold on services under Tor.Por. 4/2528 clause 8 applies to payers that are juristic persons
- The customer withheld tax but sent no certificate. What now?
- Ask for the 50 Tawi certificate, because you need it as evidence to use the withheld tax as a credit
Sources
Checked against official announcements on 21 October 2026
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