Thailand is currently considering the enactment of legislation where imports below THB1,500 in value will no longer enjoy a valued-added tax ("VAT") exemption. Regarding the timeline, the Revenue Department will submit a draft law to the Ministry of Finance in May 2024 for subsequent consideration by the Cabinet of Thailand.
The purpose of this imposition of VAT is to address concerns of small and medium enterprises (SMEs) and local businesses regarding the proliferation of low value e-commerce goods which enter the country and are VAT exempt. If the draft law is passed, the sale will attract VAT at the online checkout, and it will be necessary for sellers to register for VAT and remit the VAT amounts.
This measure is in line with the measures that have applied to VAT on digital services since 2021.
