Thailand's Ministry of Finance announced that it will impose value-added tax (VAT) on low-value imported goods purchased directly by consumers from abroad. This policy will be effective from July 5 to December 31, 2024.
Previously, imported goods valued under 1,500 Baht were exempt from VAT. Under the new rules, VAT will be added at online checkout, and sellers will be required to register for VAT, submit reports, and make tax payments.
The registration process will be simplified without a threshold. If sellers fail to register, payment service providers (e.g., credit card companies) will be required to withhold VAT.
After December, new legislation will be introduced to allow the revenue department to continue collecting VAT on these products.
This policy aims to create a level playing field for local businesses and increase tax revenue. Previously, there was a disparity between foreign and domestic sellers regarding tax obligations. Thailand-based e-commerce sellers had to charge VAT on all sales, whereas Chinese sellers could take advantage of existing import thresholds.
Additionally, this policy aligns with international agreements that set minimum value thresholds for imported goods to be subject to customs duties.
This declaration, referencing Article 12 of the Customs Tariff Act of 1987, was approved by the Cabinet on June 4 and covers three main areas.
