Thailand implemented temporary measures to tax low-value goods imported into the country

Thailand has implemented temporary measures effective July 5, 2024, to tax low-value goods (LVGs) imported into the country. These measures will remain in effect until December 31, 2024. Under the new rules, almost all imported goods valued between THB 1 and THB 1,500 will be subject to VAT, which aims to level the playing field for local businesses that previously faced competition from exempt foreign imports. The Ministry of Finance is also working on amending the Revenue Code to formalize this VAT collection process. Foreign sellers must ensure VAT is paid either by their logistics providers or by the recipient in Thailand, depending on the delivery method

These temporary measures were implemented on July 5, 2024, and will remain in effect until the end of the year.

Almost all imports are subject to import duty and VAT, regardless of their value.

The Ministry of Finance intends to amend the Revenue Code to apply VAT on low-value goods (LVGs) priced between THB 1 and THB 1,500. Due to the lengthy amendment process, Thai Customs has been instructed to collect these taxes in the meantime.

Goods valued over THB 1 but under THB 1,500 will be subject to VAT.

These measures were formalized through Official Notifications issued on June 19 and July 5, 2024.

While these regulations are temporary, final amendments to the Revenue Code are still pending and will be effective until December 31, 2024.

Foreign sellers entering the Thai market via e-commerce must ensure that VAT is paid either by their logistics providers or by the recipient in Thailand, depending on the delivery method.