Rajah & Tann Regional Round-Up
your snapshot of key legal developments in Asia
Issue 1 - Jan/Feb/Mar 2024
 

Removal of VAT Exemption Proposed

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.



Please note that whilst the information in this Update is correct to the best of our knowledge and belief at the time of writing, it is only intended to provide a general guide to the subject matter and should not be treated as a substitute for specific professional advice.

 

R&T Asia (Thailand)
973 President Tower, 12th Floor,
Units 12A - 12F , Ploenchit Road, Lumpini,
Pathumwan, Bangkok 10330, Thailand
http://th.rajahtannasia.com


Contacts:

Surasak Vajasit
Managing Partner
D +66 2656 1991
F +66 2656 0833
surasak.v@rajahtann.com

Melisa Uremovic
Deputy Managing Partner
D +66 2264 5055
F +66 2264 5057
melisa.u@rajahtann.com

Krida Phoonwathu
Partner
D +66 2656 1991
F +66 2264 5057
krida.phoonwathu@rajahtann.com

Nattarat Boonyatap
Partner
D +66 2656 1991
F +66 2264 5057
nattarat.boonyatap@rajahtann.com

Piroon Saengpakdee
Partner
D +66 2264 5055
F +66 2264 5057
Piroon.s@rajahtann.com

Rajah & Tann Asia is a network of legal practices based in Asia.

Member firms are independently constituted and regulated in accordance with relevant local legal requirements. Services provided by a member firm are governed by the terms of engagement between the member firm and the client.

This update is solely intended to provide general information and does not provide any advice or create any relationship, whether legally binding or otherwise. Rajah & Tann Asia and its member firms do not accept, and fully disclaim, responsibility for any loss or damage which may result from accessing or relying on this update.