Popular Post webfact Posted April 3 Popular Post Share Posted April 3 The Thai government, under the directive of Prime Minister Srettha Thavisin, is preparing to implement a 7% value-added tax (VAT) on imported goods valued at 1 baht and above, starting in May. Currently, goods sold for less than 1,500 baht (US$40) per parcel and imported into Thailand are exempt from VAT. Deputy Finance Minister Julapun Amornvivat announced these plans after yesterday’s Cabinet meeting, asserting the new VAT collection is a move towards fairness for Thai small businesses. “VAT collection is to ensure fairness for small businesses in Thailand, as both foreign and domestic operators will have to pay taxes at the same rate.” The move is also expected to boost government tax revenue. The new tax measure is endorsed by Thanawat Malabuppha, honorary president and advisor of the Thai e-Commerce Association, who believes it will enhance the competitiveness of local small and medium-sized enterprises (SMEs). He noted that low-priced Chinese goods, sold on e-commerce platforms like Lazada, Shopee, and TikTok Shop, have flooded the Thai market, causing intense price competition and disadvantaging local SMEs. Paul Srivorakul, chief executive of aCommerce, a leading e-commerce enabler, agrees with Thanawat’s view. “The new rule ensures that all goods, regardless of origin, are subject to the same tax standards, levelling the playing field for local products and domestic businesses.” Paul also acknowledged that while this might complicate customs procedures and potentially slow down the import of legitimate goods, the benefits to local SMEs and the Thai economy are more significant. Sangchai Theerakulwanich, President of the Federation of Thai SMEs, welcomed the move as a step towards fairer trade. “Cheap imports are usually ordered online, causing local sellers who cannot compete to shut down.” Sangchai also called for better state monitoring of border trade in light of reports of smuggling goods into Thailand to avoid customs duties, reported Bangkok Post. The Federation of Thai Industries (FTI) has underscored the need for better protection against the influx of cheap Chinese products to maintain their competitiveness. Chairman of the FTI, Kriengkrai Thiennukul, revealed that the import of Chinese products has led some local manufacturers, especially SMEs, to slash production by 50%. by Alex Morgan Picture courtesy of Bangkok Post Source: The Thaiger 2024-04-03 - Discover how Cigna Insurance can protect you with a range of visa-compliant plans that meet the minimum requirement of medical treatment. For more information on expat health insurance click here. Get our Daily Newsletter - Click HERE to subscribe 1 2 3 Link to comment Share on other sites More sharing options...
bob smith Posted April 3 Share Posted April 3 I give up! bob. 1 1 1 Link to comment Share on other sites More sharing options...
Popular Post worgeordie Posted April 3 Popular Post Share Posted April 3 16 minutes ago, webfact said: 7% value-added tax (VAT) on imported goods valued at 1 baht and above, I would say the Government is getting desperate ,they need cash from anywhere to get money for the wallet scheme , it's going to make deliveries longer ,and who is going to collect the tax ... regards Worgeordie 5 1 8 Link to comment Share on other sites More sharing options...
Popular Post Banana7 Posted April 3 Popular Post Share Posted April 3 It's silly to tax goods of small value because the cost and effort to do so is above the value gained. It probably costs 50-100 baht just to calculate and collect the tax, and far more if the tax is not prepaid. So for a 100b item, 7b is tax but costs 50b to collect, so the government loses 43b. 4 2 2 1 6 Link to comment Share on other sites More sharing options...
eisfeld Posted April 3 Share Posted April 3 I never understood why imported goods would have lower taxes than locally produced. With low value items the margins are usually razor thin so any percent of tax has an outsized impact on overall profitability. It made more sense to produce something outside Thailand and then ship it over than produce in Thailand. Who came up with that idea? 1 1 Link to comment Share on other sites More sharing options...
cmike Posted April 3 Share Posted April 3 40 minutes ago, worgeordie said: I would say the Government is getting desperate ,they need cash from anywhere to get money for the wallet scheme , it's going to make deliveries longer ,and who is going to collect the tax ... regards Worgeordie The post office collects the tax. I received a note yesterday telling me that I have received a parcel and I need to pay 250 Baht tax and 240 Baht import duty at the main post office before I can get the goods 1 2 Link to comment Share on other sites More sharing options...
Popular Post connda Posted April 3 Popular Post Share Posted April 3 1 hour ago, webfact said: “VAT collection is to ensure fairness for small businesses in Thailand, as both foreign and domestic operators will have to pay taxes at the same rate.” The move is also expected to boost government tax revenue. This is about hoovering more wealth from those who can least afford to pay. "Fairness for small businesses?" Bunk. 2 2 1 8 Link to comment Share on other sites More sharing options...
Popular Post connda Posted April 3 Popular Post Share Posted April 3 56 minutes ago, bob smith said: I give up! bob. Time to leave Thailand again bob! 2 1 5 3 Link to comment Share on other sites More sharing options...
Popular Post bob smith Posted April 3 Popular Post Share Posted April 3 1 minute ago, connda said: Time to leave Thailand again bob! nah, i'm staying! got front row tickets to the freak show! 😄 bob. 2 1 Link to comment Share on other sites More sharing options...
Popular Post Bert got kinky Posted April 3 Popular Post Share Posted April 3 (edited) Will they tax the full cost (inc. freight) or just the value of the goods. 7% value-added tax (VAT) on imported goods valued at 1 baht and above So if something is valued at 1 Baht, how are you supposed to pay the tax, are they also going to introduce 1 Satang coins or will they round it up to the lowest value coin available (25 Satang), which would mean that you are paying 25%? Edited April 3 by Bert got kinky 1 1 1 6 Link to comment Share on other sites More sharing options...
Popular Post Bert got kinky Posted April 3 Popular Post Share Posted April 3 6 minutes ago, cmike said: The post office collects the tax. I received a note yesterday telling me that I have received a parcel and I need to pay 250 Baht tax and 240 Baht import duty at the main post office before I can get the goods Only on goods shipped through the post office, most small goods are now shipped through private courier companies. 2 1 3 Link to comment Share on other sites More sharing options...
Popular Post John Drake Posted April 3 Popular Post Share Posted April 3 Prayuth was better. 1 1 2 6 Link to comment Share on other sites More sharing options...
Popular Post cooked Posted April 3 Popular Post Share Posted April 3 But they reduced tax on imported alcohol didn't they? Not 100% sure I like this new government. 1 2 Link to comment Share on other sites More sharing options...
Popular Post digbeth Posted April 3 Popular Post Share Posted April 3 It was unfair that shops in China can set up store fronts in Lazada or Shopee and ship 'cheap' <1500.- baht stuff into Thailand tax free and with possibly cheaper freight than any local thai based stores can do... this is not even considering that Thai business has to pay business taxes on top but levying this on the platforms like Lazada and Shopee means people will move on to other platforms that don't have presence in Thailand like Alibaba, 1 1 2 Link to comment Share on other sites More sharing options...
dinsdale Posted April 3 Share Posted April 3 Reduce import and excise tax and introduce a VAT. Mmmm? Seems like kindergarten was back in for this one. Shhhhhhhh! No one will notice. 1 1 Link to comment Share on other sites More sharing options...
Popular Post digbeth Posted April 3 Popular Post Share Posted April 3 1 hour ago, dinsdale said: Reduce import and excise tax and introduce a VAT. Mmmm? Seems like kindergarten was back in for this one. Shhhhhhhh! No one will notice. VAT has always been here they just try to close the loophole that allows personal import of small value stuff to be vat-exempt trying to stop the deluge of chinese stuff 1 1 1 2 Link to comment Share on other sites More sharing options...
Liverpool Lou Posted April 3 Share Posted April 3 3 hours ago, Banana7 said: So for a 100b item, 7b is tax but costs 50b to collect, so the government loses 43b. Where has the "B50-100 cost for collection of the VAT on each individual item" that you quote been detailed? Perhaps on a governmental scale the cost would only be B1 in which case the government's "profit" would be substantial? 1 1 1 Link to comment Share on other sites More sharing options...
Popular Post Liverpool Lou Posted April 3 Popular Post Share Posted April 3 3 hours ago, eisfeld said: I never understood why imported goods would have lower taxes than locally produced. In relation to this OP, they don't have lower tax rates, there is/was just a level below which no tax was imposed. 3 Link to comment Share on other sites More sharing options...
Liverpool Lou Posted April 3 Share Posted April 3 2 hours ago, cmike said: 3 hours ago, worgeordie said: I would say the Government is getting desperate ,they need cash from anywhere to get money for the wallet scheme , it's going to make deliveries longer ,and who is going to collect the tax ... regards Worgeordie Expand The post office collects the tax. ...or the courier...or the Customs department. Link to comment Share on other sites More sharing options...
rexpotter Posted April 3 Share Posted April 3 The concept sounds benevolent, but how will they really enforce this? 1 Link to comment Share on other sites More sharing options...
rexpotter Posted April 3 Share Posted April 3 Additional taxes are never meant to benefit anyone who doesn't work for the goverment. 2 2 Link to comment Share on other sites More sharing options...
Liverpool Lou Posted April 3 Share Posted April 3 2 hours ago, Bert got kinky said: So if something is valued at 1 Baht, how are you supposed to pay the tax, Who on earth is going to be importing goods valued at B1? The reference to B1 was simply to explain that, currently, imports valued at less than B1500 (B1-1,500) are duty-free. 2 Link to comment Share on other sites More sharing options...
John Drake Posted April 3 Share Posted April 3 5 minutes ago, rexpotter said: The concept sounds benevolent, but how will they really enforce this? Just hold everything via post at Lak Si, require you to make a trip there that'll cost you maybe a 1000 baht, and have you pay your 70 baht tax. 1 1 1 Link to comment Share on other sites More sharing options...
Popular Post Liverpool Lou Posted April 3 Popular Post Share Posted April 3 2 minutes ago, John Drake said: Just hold everything via post at Lak Si, require you to make a trip there that'll cost you maybe a 1000 baht, and have you pay your 70 baht tax. Shipments using Thailand Post are held at the recipient's local delivery office pending duty payment, not Lak Si. 2 1 1 Link to comment Share on other sites More sharing options...
khunPer Posted April 3 Share Posted April 3 They need money for the 10,000 baht scheme... 1 1 Link to comment Share on other sites More sharing options...
Bert got kinky Posted April 3 Share Posted April 3 7 minutes ago, Liverpool Lou said: Who on earth is going to be importing goods valued at B1? The reference to B1 was simply to explain that, currently, imports valued at less than B1500 (B1-1,500) are duty-free. It was a hypothetical question, is that beyond your understanding? Just to explain that to you: A hypothetical question is one based on supposition, not facts. They are typically used to elicit opinions and beliefs about imagined situations or conditions that don't exist. 1 1 Link to comment Share on other sites More sharing options...
Popular Post tomazbodner Posted April 3 Popular Post Share Posted April 3 3 hours ago, webfact said: “The new rule ensures that all goods, regardless of origin, are subject to the same tax standards, levelling the playing field for local products and domestic businesses.” Right. Remove the import duty especially on luxury items and cars, then. 1 1 1 1 Link to comment Share on other sites More sharing options...
brianthainess Posted April 3 Share Posted April 3 2 hours ago, cooked said: But they reduced tax on imported alcohol didn't they? Not 100% sure I like this new government. I'm 100% sure I don't. 1 Link to comment Share on other sites More sharing options...
lopburi3 Posted April 3 Share Posted April 3 3 hours ago, Bert got kinky said: are they also going to introduce 1 Satang coins They are here - but they sell for a lot more than a Satang. 1 Link to comment Share on other sites More sharing options...
brianthainess Posted April 3 Share Posted April 3 4 hours ago, webfact said: who believes it will enhance the competitiveness of local small and medium-sized enterprises (SMEs). He noted that low-priced Chinese goods, sold on e-commerce platforms like Lazada, Shopee, and TikTok Shop, have flooded the Thai market, causing intense price competition and disadvantaging local SMEs. I can understand that in a way, BUT as I have said before every time this story is regurgitated Thousands of goods that are made in China are simply not made in Thailand, especially some electrical items, from remotes to eclectic bikes and beyond. Plastic goods, bedroom slippers, dash cams, also UBS leads........etc. etc. Link to comment Share on other sites More sharing options...
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