That ‘++’ printed on hotel and restaurant menus is two charges stacked together — a 7% VAT and a 10% service charge — which land at roughly +17% on the price you saw. Here’s the plain-English version: what each one is, where it applies, how to read a Thai bill, whether you still tip, and how tourists claim the VAT back at the airport. Unbiased, never paid placement.
‘++’ = 10% service charge + 7% VAT, which compounds to about +17%. It mainly shows up at hotels and full-service restaurants, not street food or casual spots. Everyone pays it equally — it is not farang pricing — and it does not apply to your rent.
When a menu says “all prices subject to 10% service charge and 7% VAT” or just shows ‘++’ (“plus-plus”), it means two charges get added at the till. First the venue adds a 10% service charge to the menu price; then 7% VAT is applied on that new, higher subtotal. Because the VAT is charged on top of the service charge, the two compound: 100 becomes 110 (service), then 110 × 1.07 = 117.70. That’s why the real-world uplift is closer to +17.7%, usually rounded to “+17%.” A 1,000-baht dinner for two becomes about 1,177 baht — worth knowing before the bill lands.
VAT (value-added tax) is Thailand’s broad consumption tax on most goods and services, collected by registered businesses and remitted to the Revenue Department. The headline figure is 7%. Technically the statutory rate is 10%, but it has been reduced to 7% by royal decree and renewed again and again for years, so 7% is the number you actually pay — just be aware the legal default could revert if a renewal lapses. Large retailers, malls, supermarkets, chain restaurants and hotels charge or include VAT; many small vendors, markets and street stalls sit below the registration threshold and don’t charge VAT at all, which is part of why street food feels so cheap.
The service charge is a fee the venue adds — not a government tax, and not a tip you decide on. Key facts:
If a menu shows clean round prices and says “net” or “inclusive,” what you see is what you pay. If it shows ‘++’, mentally add about 17% to estimate the real total. When in doubt, ask — staff are used to the question, and a quick “net or plus-plus?” saves any bill-time surprise.
If you run a business in Thailand, VAT becomes your obligation once annual revenue crosses 1.8 million baht (you can also register voluntarily below that). Registered businesses must charge 7%, issue proper tax invoices, and file monthly VAT returns (PP30). This is mostly relevant to entrepreneurs, freelancers and landlords operating as a registered business. Importantly for property: residential rent is generally VAT-exempt, so a typical landlord leasing a home or condo to a tenant isn’t adding 7% to the rent — though some commercial leases and serviced/short-stay arrangements can be taxable. If you’re setting up a business, get this confirmed by a Thai accountant.
So when your dinner bill carries ‘++’, that’s tax and service applied to everyone — not the two-tier “farang price” you may have read about. The genuinely two-tier stuff is a separate, much narrower issue covered in our dual pricing guide.
Thailand isn’t a heavy tipping culture, and when a 10% service charge is already on the bill, there’s no obligation to tip on top — most people just round up or leave the loose coins. Where no service charge applies (casual restaurants, street food, taxis), a small tip is appreciated but never expected. The practical rule: check whether the bill already says ‘service charge’ before deciding. Full norms by setting are in our tipping in Thailand guide.
The scheme refunds VAT on goods you take out of the country — not on meals, hotels or services. It’s aimed at short-term visitors; residents and most long-stay visa holders generally can’t use it. Rules, minimum amounts and airport procedures change, so confirm the current details with the Revenue Department or the refund counter before you rely on them.
For anyone relocating, the reassuring part: residential rent has no service charge and is generally VAT-exempt — the listed rent is what you pay, with no 7% bolted on. Where extra costs creep in, it’s usually landlord sub-meter markups on electricity and water (which hit Thais and foreigners equally) or building common-area fees set by the condo’s juristic person — not restaurant-style VAT. A clear written lease should itemise exactly what’s included. See the everyday numbers in our cost of living guide.
Editorial analysis compiled and periodically refreshed by BAANLYY’s research team — not a live data feed.
Analysis last reviewed July 2026.
No service charge, no VAT bolted onto your rent — just transparent listings, written leases and metered utilities. Browse residences and see the real, all-in number.
General information only — not legal, tax or financial advice. The 7% VAT rate, the 1.8M-baht registration threshold, VAT-exemption rules, and the tourist VAT-refund minimums and procedures change over time and have exceptions. Confirm current details with the Thai Revenue Department or a qualified Thai accountant before acting. BAANLYY never takes paid placement.
Primary and official sources are cited above. Government rules, fees and procedures in Thailand change over time and vary by office; always confirm current requirements with the relevant authority before relying on them. BAANLYY never takes paid placement in editorial content.