Thailand has been deliberating for some time the enactment of legislation to remove the value-added tax ("VAT") exemption available to imports valued at less than THB1,500. The discussion has centred on addressing 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.
On 19 June 2024, the Ministry of Finance issued the Notification on the Exemption of Customs Duties for Items Valued at no more than THB1,500 ("Notification") approving the imposition of 7% VAT on all imports, with effect from 5 July 2024 to 31 December 2024. The Notification was issued under Section 12, paragraph one of the Customs Tariff Decree B.E. 2530. The imposition of VAT on all imports will be collected by the Customs Department of Thailand at the time of import, together with the import duties (if not eligible for exemption).
The Notification also implements a waiver of customs duties for imported items with a total cost, including shipping and insurance (CIF), exceeding THB1 but not surpassing THB1,500.
