Thai government plans 7% VAT on imported goods from May

[eisfeld]

48 minutes ago, Liverpool Lou said:

In relation to this OP, they don't have lower tax rates, there is/was just a level below which no tax was imposed.

 

Ok let me rephrase. "Why low value imported goods would have lower tax rates than locally produced". Everyone else probably got it the first time.

[MrPancake]

3 hours ago, Bert got kinky said:

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%?

 

 

[bamnutsak]

4 hours ago, Banana7 said:

It's silly to tax goods of small value because the cost and effort to do so is above the value gained.

 

This is exactly why this exemption exists in the first place.

 

 

[digbeth]

The exemption was there because they did not foresee the scale and reach of importation that is now possible with the Chinese (Singaporean) apps, 

going back 10 years ago, ordering online means doing it through the computer, you'd need credit cards or bank accounts and be able to click through things in English, sure a few Farang and Hiso thais maybe able to get things off Amazon, the average Somchais have no idea how

 

but now there's cash on delivery and any grandma can order things on their phone....

 

and no they're not doing it through the post office like leaving the green card for you to pay at the office, they're asking for a cut from the apps, they know they won't be able to handle the volume otherwise, 

 

The Chinese found a loophole or lobbied for it in the first place, same with electric cars, they negotiated exemption for electric cars import where imports from other countries get 80% tax, decade back, battery electric vehicle in most people minds are probably gold carts... and now they're set to dominate the market 

[Ben Zioner]

2 hours ago, brianthainess said:

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.

You can still buy them though, for a few baht more.

[ChaiyaTH]

Yet they still not address the fact that we / Thais can only sell within Thailand, but not to for example Vietnam or another country in SE asia, while the Chinese somehow can sell as a dropshipping business, from China, to all of the countries on platforms like Lazada and Shopee. 

Long story short: there was very little margins left already, as the platforms also want more and more, with this additional 7% even you would normally be exempt from having to charge VAT as a small medium business owner (up to near 2M turnover), they basically give most niche and small stuff away to the Chinese, as they will still do it without any issues, from China to here, for even 1-2% profit, as they can do volume. 

 

Like once again it seems they shoot themselves in the feet with a way too fast made decision, and this is just one of the many arguments, not to mention the lack of buying power already existing today etc etc. Guess soon the 20 baht shops are nostalgic as well then, by then they fked any traditional business type.

[Middle Aged Grouch]

Lazada will shut down !!! But the chinese who are smarter will crash prices even more and offer their crap at even cheaper rates then now, incl. VAT. It's the supplier at the end of the food chain who will suffer a bit more or stop doing business with the ruthless online platforms and their crashed prices with free shipping.

[ChaiyaTH]

5 minutes ago, Middle Aged Grouch said:

Lazada will shut down !!!

Why? They are Chinese and Chinese sell on there for the most part, all official and big stores already pay VAT regardless too. It is just the small medium Thai sellers fked over.

 

Like I even sold on there for gadgets and wanted to officially import everything by the rules when we started, yeah impossible, there would be like 3-5% profit margins left. So then we found out, everyone pays per KG via trucks that go over land borders, and then there is some margin. I'm talking the cheap products.

 

But if you then now do the 7% VAT regardless, they will have like a red numbers at the bottom of the sheet. For my gf just making 15-20K a month this way, it was ideal without much other nonsense.

 

To conclude: this is once again a grab of the elite to control even more of the pie, aside from being foolish on political level and donating the rest to China.

[ChaiyaTH]

Fast forward: June 6th 2025 - Bangkok;

 

Thai government enforces 20 baht additional charge at barbershops providing wet shaves to foreigners. Minister somchai said, there was one incident 29 years ago where I saw a foreigner got cut while getting a wet shave, this could cost Thailand a lot of money as some foreigners run away from the hospital.

[Sigmund]

Well in that case we will spend our money on other platforms then lazada or shopee and get it shipped via private delivery courriers tax free and free shipping all on COD of course.

[Etaoin Shrdlu]

I don't think 7% VAT is going to level the playing field.

[redwood1]

The percentage (in total value) of goods shipped to Thailand that are valued at over 1,500 baht must make up well over 99% of all shipping.....

 

The under 1,500 baht shipping is hardly worth the trouble......Sure the tax would add up to many millions of dollars.....But the cost and time of mucking around with 20 50 100 baht in taxes on packages would also be in the millions of dollars....

 

No one wins here...

[noobexpat]

I remember when UK forced VAT on to products on aliexpress.

The app simply changed, it added the tax and you paid the higher price.

Aliexpress sends uk treasury or whoever the tax.

 

Its not rocket science.

[Puccini]

12 hours ago, Bert got kinky said:

Will they tax the full cost (inc. freight) or just the value of the goods...

 

Generally, VAT is calculated on "landed cost", which is the total of:

CIF value (cost, insurance and freight)

+ Import duty, where applicable,

+ Exise tax, where applicable

 

[Advocatus Diaboli]

3 hours ago, Puccini said:

Generally, VAT is calculated on "landed cost",

so if that’s the case - are there any Sherlock Holmes out their that can find any goods that will meet that criteria being landed cost of 1 THB? Would love to see that item. 

[Gottfrid]

17 hours ago, Banana7 said:

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.

 

Why would it cost 50-100 baht? Just an added function to the customs computer system and an e-mail or sms to the person need to pay.

[hotchilli]

17 hours ago, webfact said:

“Cheap imports are usually ordered online, causing local sellers who cannot compete to shut down.”

We will not tolerate competition...

[Srikcir]

VAT and Customs Duty taxes may be controlled by Free Trade Agreements, eg., zero VAT. PM Thaksin has been actively negotiating many new FTA's to boost trade. So predicting the additional revenues from additional 7% VAT on imported goods maybe be complicated.

 

[RobU]

18 hours ago, Banana7 said:

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.

 

If VAT collection is similar to the UK. The vendor or sales platform pays all the costs of collection. The VAT is added to the basic price automatically and what you see is the cost of the item plus VAT which is what happens now in Thailand. The vendor keeps 1 or 2 percent as payment for making the collection and submits the difference to the government every 6 to 12 months. This actually makes things easier and cheaper for the vendor/sales platform since now all they have to do is submit 5 or 6 percent of their total sales rather than splitting sales between VAT and non VAT goods. 

[jacko45k]

So I can import an Aston Martin for 7% tax........? Fair compensation for the 100 baht phone case I have coming in from China.

[Peterphuket]

17 hours ago, cooked said:

But they reduced tax on imported alcohol didn't they? Not 100% sure I like this new government.

Well, yesterday i still pay the same high price for the wine.

[rexpotter]

10 minutes ago, Peterphuket said:

Well, yesterday i still pay the same high price for the wine.

Wow, Last time I bought a large bottle of Chilean Wine at Makro it was really cheap, compared to last year. Many smaller shops have old inventory that was purchased at the higher customs rate.

[rexpotter]

Chinese run all the business in

all these SE Asian countries and all have relatives back in China.

Retail tax has no effect on them, only the end buyer or little mom and pop shop guys.

[ChaiyaTH]

38 minutes ago, rexpotter said:

Chinese run all the business in

all these SE Asian countries and all have relatives back in China.

Retail tax has no effect on them, only the end buyer or little mom and pop shop guys.

''Mom and Pop shop guys'' = SME in Thailand.

[sqwakvfr]

What is 7% of 1 Baht?

[rexpotter]

28 minutes ago, ChaiyaTH said:

''Mom and Pop shop guys'' = SME in Thailand.

Thank You

[jollyhangmon]

What is 7% of 1 Baht?

 

... also known as 7 satang, never to be sniffed at!

 

[Cabradelmar]

Hitting back at all the cheap Chinese goods flooding Thailand and being sold on lazada. Problem is they are not hitting at China, but at their own people. Thailand again has lost the plot. Well, at least their Chinese overlords will be unharmed 🙄

[Peterphuket]

2 hours ago, rexpotter said:

Wow, Last time I bought a large bottle of Chilean Wine at Makro it was really cheap, compared to last year. Many smaller shops have old inventory that was purchased at the higher customs rate.

Well, i talk about the same Makro....different experience.

[Bangkok Barry]

22 hours ago, Banana7 said:

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.

 

 

You are applying logic. I'll say no more.