- Thailand’s Customs Department will start charging VAT on all imported postal goods next month
- The move is in response to the influx of cheap imports from China
- Imports sent via post currently aren’t subject to VAT if CIF value is less than 1,500 baht
- VAT collection will be enforced on all imported goods, regardless of value
- Import duties will continue to be exempt
- The new tax policy will be established quickly by the Customs Department
- The VAT-exempt rule will not apply to prohibited items
- Thailand raised its VAT threshold from 1,000 to 1,500 baht per item in 2018
- Thailand records more than 30 million parcel imports every year
- Over half of these parcels have CIF values of less than 1,500 baht
- Cheap goods are driven by online platforms retailing Chinese goods
- Customs officers need to devise effective methods of tax collection on low-cost goods
Source: aseannow.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
