Finance Ministry Moves to Introduce 7% VAT on Inexpensive Imported Items

[webfact]

 

The Finance Ministry is set to present a proposal this week to revise the Revenue Code, imposing a 7% value added tax (VAT) on all imported goods valued under 1,500 baht.

 

This move aims to level the playing field between local suppliers, who are already subject to VAT, and online overseas sellers who have been exempt from this tax.

 

Deputy Finance Minister Julapun Amornvivat explained that once the cabinet approves the draft, it will undergo review by the Council of State before being officially announced in the Royal Gazette for implementation.

 

Many countries have already begun to tax online purchases of foreign goods, and this adjustment in Thailand will help local businesses compete more fairly.

 

Initially, the Customs Department will be responsible for collecting the 7% VAT and passing it on to the Revenue Department.

 

Future discussions will explore the possibility of involving online platform operators in the collection process.

 

File photo for reference only courtesy: Thai Rath

 

-- 2024-05-13

 

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[Pique Dard]

"Finance Ministry Moves to Introduce 7% VAT on Inexpensive Imported Items"

 

..i haven't seen those inexpensive imported items

[gargamon]

So all the AliExpress stuff I used to get delivered with no VAT will now be taxed. Almost seems like the administration costs will be higher than the amounts collected.

[ezzra]

1 hour ago, webfact said:

This move aims to level the playing field between local suppliers, who are already subject to VAT, and online overseas sellers who have been exempt from this tax.

What a lame excuse, just go out and say 'We were racking our brains and thinking how to get more money from the public

and we think we found it'...

[scubascuba3]

1 hour ago, webfact said:

Future discussions will explore the possibility of involving online platform operators in the collection process.

So poor planning so far

[CartagenaWarlock]

Now I have to pay 7% tax on all transparent baby doll nighties for my concubines from Shein. Wow. What a financial burden on me! 

[Muhendis]

1 hour ago, scubascuba3 said:

So poor planning so far

 

What makes you think planning is involved?

It's knee jerk stuff as always,

Next will be import duty which is currently only collected on goods over 1,000 Baht

[jacko45k]

1 hour ago, gargamon said:

So all the AliExpress stuff I used to get delivered with no VAT will now be taxed. Almost seems like the administration costs will be higher than the amounts collected.

Yes, and some of the stuff you order on Lazada that you thought was coming from Thailand, but in reality gets shipped from China. Pretty much all my Lazada purchaese are lower value items I can't find in local shops.... and are cheaper on Lazada as no farang tax is added!

[Expat Tom]

Clever, Since I order my vitamins from the states I will  be forced to pay 3 times as much here because the mechanism for paying the VAT will be a nightmare and delivery times protracted.  . This is just one more item to put in my RFL  (Reason For Leaving)  file. Soon the Bangkok Brain Trust will completely kill the goose that lays the golden egg. 

There are estimated to be over 80,000 farang living in Thailand.  How many will leave before the Clown Show in BBK feels the pain. Let's harass the farang, tax them, charge them more to enter public parks and go to the hospital and make the visa process stupid. There are 9 other countries on the International Living list of best places for Expats to live abroad and two of them are other ASEAN countries; the PI and Vietnam. No place is perfect but the shin is wearing off Thailand for me.

[FlorC]

So , tired of hearing  "mai mee & mai dai" here in Thai shops , you turn to lazada where they do have it,

now we have to pay tax on it. This after we bring in money from abroad to be taxed from this year on.

[jacko45k]

5 minutes ago, Expat Tom said:

Soon the Bangkok Brain Trust will completely kill the goose that lays the golden egg. 

What Golden Egg is that then... you living here?

[dpcjsr]

This is another part of a consistent pattern by the new government to raise revenue. They seem to be desperate for more money which is not good for most of us. Anyone else having fond memories of Prayut? lol

[JensenZ]

2 hours ago, Pique Dard said:

"Finance Ministry Moves to Introduce 7% VAT on Inexpensive Imported Items"

 

..i haven't seen those inexpensive imported items

Currently, there are no VAT or import duties on imported items under 1500 baht. When they introduce a 7% VAT, it will also be charged on shipping fees. It will be a big money grab.

[goatfarmer]

2 hours ago, gargamon said:

So all the AliExpress stuff I used to get delivered with no VAT will now be taxed. Almost seems like the administration costs will be higher than the amounts collected.

If it's only on Ali Express and Lazada stuff, it wouldn't be such an issue, but going to the post office to pay and collect or enabling the ThaiPost delivery guy to collect 20 baht would be a huge inconvenience and burden. 

[goatfarmer]

 

"The Finance Ministry is set to present a proposal"

 

I thought it was a done deal and was going to be implemented as of May 1st; ie, two weeks ago.

 

[Classic Ray]

VAT is always a popular tax for Governments as the burden of collecting it usually falls on the retailers, and it is very difficult to evade, as opposed to income tax, not paid by the majority of Thais.

 

Be grateful it is only 7% rather than the 20% charged in the UK.

[nobodysfriend]

If you want to avoid headaches , best is not to buy this cheap chinese stuff anyway .

The quality is often so low that it finishes in the bin after just a short time .

And , to replace it , you have  to buy another , similar item of better quality and higher price . Cheap chinese stuff is a waste of money and time . But , if you need something that bis not expensive anyway , like a water tab for 100 baht , it will cost you 107 baht in the future . Not a reason to become desperate .

Same item often is for sale by local sellers , no additional tax will apply .

Anyway , even with the 7% VAT applied , most stuff here is still much cheaper than in your home country , where it is often really excessively taxed .

 

[NemoH]

51 minutes ago, jacko45k said:

Yes, and some of the stuff you order on Lazada that you thought was coming from Thailand, but in reality gets shipped from China. Pretty much all my Lazada purchaese are lower value items I can't find in local shops.... and are cheaper on Lazada as no farang tax is added!

I understand this ew VAT tax does not affect Lazada and Shoppee from china because China is currently exempted from Thai import taxes and VAT.

[hotchilli]

3 hours ago, webfact said:

The Finance Ministry is set to present a proposal this week to revise the Revenue Code, imposing a 7% value added tax (VAT) on all imported goods valued under 1,500 baht.

 

This move aims to level the playing field between local suppliers, who are already subject to VAT, and online overseas sellers who have been exempt from this tax.

China will not be happy. 

[hotchilli]

2 hours ago, Pique Dard said:

"Finance Ministry Moves to Introduce 7% VAT on Inexpensive Imported Items"

 

..i haven't seen those inexpensive imported items

Thousand upon thousands of items under the value of 1,500 baht enter Thailand from China and elsewhere daily.

[Ben Zioner]

We need another military coup.

[JoePai]

3 hours ago, Pique Dard said:

"Finance Ministry Moves to Introduce 7% VAT on Inexpensive Imported Items"

 

..i haven't seen those inexpensive imported items

 

Lazada.com  ?

[Bundooman]

1 hour ago, CartagenaWarlock said:

Now I have to pay 7% tax on all transparent baby doll nighties for my concubines from Shein. Wow. What a financial burden on me! 

you know women who still wear transparent nighties?

Are all these women under 90?

still, nothing like a sag-grab .......

Hahaha.

[FlorC]

17 minutes ago, nobodysfriend said:

If you want to avoid headaches , best is not to buy this cheap chinese stuff anyway .

The quality is often so low that it finishes in the bin after just a short time .

And , to replace it , you have  to buy another , similar item of better quality and higher price . Cheap chinese stuff is a waste of money and time . But , if you need something that bis not expensive anyway , like a water tab for 100 baht , it will cost you 107 baht in the future . Not a reason to become desperate .

Same item often is for sale by local sellers , no additional tax will apply .

Anyway , even with the 7% VAT applied , most stuff here is still much cheaper than in your home country , where it is often really excessively taxed .

 

How long till this government will raize the VAT to 10 % ?

[Bangkok Barry]

3 hours ago, gargamon said:

So all the AliExpress stuff I used to get delivered with no VAT will now be taxed. Almost seems like the administration costs will be higher than the amounts collected.

 

You are thinking things through, not something Thais are known for.

[Bangkok Barry]

 

So the Customs department is going to examine every item that arrives into Thailand from overseas and assess the tax due on it, which will then have to be collected by the delivery companies who will be used as unpaid tax collectors. That'll work, won't it. Add an extra month to delivery times.

[Andre0720]

3 hours ago, Pique Dard said:

"Finance Ministry Moves to Introduce 7% VAT on Inexpensive Imported Items"

 

..i haven't seen those inexpensive imported items

 

Quite right.

Thailand is working hard at making imported items 'expensive', and now even more expensive is a new objective.

 

A pack of Italian coffee, with all the added costs of the imported items in my country, costs about 100 bahts ($4. Can). And I can buy regularly Lavazza coffee on sale at home for 75 bahts ($3. Can.)

 

Thailand managed to tax this coffee brand until it reached 500 bahts.

And now more.

Oh well.... How about a cup of nice coffee from Chiang Mai...

 

 

[Boedog]

Buying expensive cars, watches and property are not cheap the money has to come from somewhere 

[ExpatOilWorker]

27 minutes ago, Bangkok Barry said:

 

So the Customs department is going to examine every item that arrives into Thailand from overseas and assess the tax due on it, which will then have to be collected by the delivery companies who will be used as unpaid tax collectors. That'll work, won't it. Add an extra month to delivery times.

No, just let Lazada and Shopee add VAT the moment you click buy.

Ali Express will be a bit more tricky, but doable.

Shopping 🛍 outside these platforms will still be dealt with case by case.

[Presnock]

1 hour ago, dpcjsr said:

This is another part of a consistent pattern by the new government to raise revenue. They seem to be desperate for more money which is not good for most of us. Anyone else having fond memories of Prayut? lol

most of it probably because of Prayut as he left the coffers empty and the debts piling up, submarines anyone?