Thailand Considers VAT on Imported Goods Under 1,500 Baht

[mran66]

55 minutes ago, Airwolf said:

Does every country include VAT on the shipping cost, or is it just Thailand?

I paid 120% duty/fees on a shipment from France, as they dinged me for the shipping too. 

 

Not sure if every country, but it is customary to include shopping costs to the import duty/tax base in developed countries 

[mran66]

1 hour ago, tgw said:

VAT on imports isn't really a big issue, 7% on reading glasses that cost 35 baht won't be much.

 

the problem will be with the "service fee" - I guess they will collect that on every import to pay for the manpower needed to process the volume.

 

 

AliExpress do this for some euro countries already, vat included in price and they settle with tax aurhorities n countries.

 

If this gets real in Thailand, I would expect they just switch on that feature for thai delivery orders in their platform and also activate it in lazada which they own. 7% won't make big difference as long as the operation is automated and smooth, without delays or handling fees 

[KhunBENQ]

Got a package from the US (vitamins/supplements).

Total cost incl shipment 76.88 USD.

Thai customs opened it, valued it 2800 Baht.

Duty 140

VAT 206

Fee 20

Paid 366 Baht. Total about 13%.

Still magnitudes cheaper than paying the inflated prices here.

[NobbyClarke]

I'm sure that the Chinese will not be happy if this happens.

I doubt that the Russian Mafia won't be impressed.

It's a waiting game.....

[ricklev]

They have moved one step past the "mulling" stage. 

[Muhendis]

Leveling the playing field has nothing to do with Thai greed.

This from https://www.trade.gov/country-commercial-guides/thailand-import-tariffs

Add to this VAT on goods and transport.

Now goods below 1,500 Baht

Look out for government workers with unexplained wealth.

Import Tariffs

 

 

Last published date: 2024-01-09

Thailand’s average Most-Favored-Nation (MFN) applied tariff rate was 11.5 percent in 2021 (latest data available). Thailand’s average MFN applied tariff rate was 31.2 percent for agricultural products and 8.4 percent for non-agricultural products in 2021 (latest data available).  Thailand has bound 75.2 percent of its tariff lines in the World Trade Organization (WTO), with an average WTO bound tariff rate of 28.0 percent.

High tariffs in many sectors continue to hinder access to the Thai market for many U.S. products.  The highest ad valorem tariff rates apply to imports competing with locally produced goods, including automobiles and automotive parts, motorcycles, beef, pork, poultry, tea, tobacco, flowers, beer and spirits, and textiles and apparel.  Wine imports are subject to a 54 percent tariff and six different taxes; taken together, the effective duty and tax burden is nearly 400 percent. Industry has raised concerns about the import tariffs on wine and disparate ad valorem taxes that appear to favor domestic white liquor.

Despite Thailand’s 20-year Alternative Energy Development Plan (2018-2037), which aims to increase biofuels consumption, Thailand restricts the import of biofuels intended for fuel use. Fuel ethanol imports require approval and issuance of permits by Thailand’s Ministry of Energy, but to date the ministry has not issued any approvals or permits. Thailand originally aimed to phase out premium gasoline containing 10 percent ethanol blends (Octane 91 E10) by 2018 and octane 95 E10 E85 between 2023 and 2027, with the intention of making 20 percent ethanol blends (E20) the primary gasohol. However, concerns over sufficient feedstock availability in Thailand have repeatedly delayed the full transition from E10 to E20.

To look up specific tariffs, please see Customs Info Database. 

[Zack61]

I can see this bottle necking the Thai postal system. BIG TIME. 

[Paul Henry]

Does this tax effect all household items and food stuffs imported.In the main they are all under 1500Bht. If yes welcome to a new round of inflation.Already many imported food items are way to expensive compared to Thailands neighbours. The Thai Govt really knows how to attract tourists and expats.WELL DONE.

[crazykopite]

I had a delivery from China yesterday by Flash express they charged me an extra 6 baht on a 300 baht package the delivery guy said if I don’t pay then they send it back to the supplier 

[natway09]

This is a peanut collection for the Government but it was only a matter of time & rightfully so in many instances.

Can't blame a local Thai manufacturer/retailer getting their nose outa joint when the playing field is not level.

For ease of collection maybe items under 100Bht should be exempt

[crazykopite]

1 hour ago, mran66 said:

 

Not sure if every country, but it is customary to include shopping costs to the import duty/tax base in developed countries 

I think they add the postal/shipping costs in as well as the value of the product as it happened to me several years ago 

[LennyW]

1 hour ago, patman30 said:

it will happen here
just as it is happening elsewhere
sending VAT free "gifts" internationally via the postal system will become a thing of the past
though this may be more to do with shopee and lazada and low value items from China
 

I read an article before and that is exactly what was mentioned, cheap Chinese goods coming in through Lazada and Shopee, quite a sizeable amount apparently!

[Andycoops]

Good, people who live here should support the local economy not these global don't give a fook businesses who sell crap.

[sambum]

I thought this was already "being considered" a few weeks ago?

 

Or did they have to have a meeting first to discuss what is to be considered?

[Mavideol]

this will affect China (Chinese goods)  they will not allow that, lazada, shopee, aliexpress (just to mention a few) will be affected

[shunter]

Desperate ends, desperate means,  searching the easy chairs and  couches for any small change...

[RobU]

This is old news it was reported as being actioned months ago in this forum

[ikke1959]

They do again without thinking. The costs will be higher than the benefits, especially on articles of 1000thb or less. Besides that a lot people are needed to handle all packages. Who is going to pay for it and the logistic organisation. Where to store all packages,what to do with refused packages because of the taxes and the refunds that has to be done when people are not satisfied or get damaged items.. and many more

[JensenZ]

7 hours ago, Moti24 said:

I used to import a few things from China.  No charges for items under 1500B including shipping.  Three or 4 times, I had to pick-up the package from EMS, and pay the VAT, even though the total price including shipping was only 1200-1300B.  When I queried it, I was told that they could send it back to Bangkok, but it probably wouldn't come back.

 

Yes, it was Pattaya!  Where else!

Come on, that's a feeble excuse to bash Pattaya... Customs processing is not done in Pattaya.

 

I've been importing iHerb for over 10 years (to my address in Pattaya), and only twice had to pay import duties and tax (for packages over 1500), and I often get packages with values over 2000 baht. I've imported more than 50 times over the years. Customs have been very generous as some shipments were over $80 US.

 

This new policy will be a real nuisance as people will need to travel to Mail Centers to pay 100 baht or less VAT on packages under 1500. I can't see many overseas exporters wanting to become tax collectors for Thailand. That's a 16km round trip for me.

 

[Liverpool Lou]

10 hours ago, Korat Kiwi said:

Yes the government is after every little satang that it can get it's hands on.  Guarantee this won't be the last of money making schemes. 

 

What's next?  Hit tourists and foreigners with some other ridiculous form of tax? 

How can this VAT change possibly be designed to "hit tourists and foreigners" as your comment suggests you believe ("This won't be the last", "What's next? Hit tourists and foreigners...")?

[Liverpool Lou]

9 hours ago, Will B Good said:

If you buy an item in the UK and it is repackaged and posted to you as a gift, no receipt,.......what then?....who decides its value and what tax is due?

The Customs Dept. decides on the value of anything imported on which duty/VAT is due, doesn't matter where it comes from, whether it is a gift or whether there's a receipt.

[Liverpool Lou]

8 hours ago, tgw said:

the problem will be with the "service fee" - I guess they will collect that on every import to pay for the manpower needed to process the volume.

Where has that "service fee" been reported?

[Liverpool Lou]

7 hours ago, Airwolf said:

Does every country include VAT on the shipping cost, or is it just Thailand?

I paid 120% duty/fees on a shipment from France, as they dinged me for the shipping too. 

Most imports in any country where duty, etc. is due work on a CIF basis, it it not peculiar to Thailand.   I'd love to see the breakdown of your alleged "120% duty/fees" on that item and what the item was.  Your claim doesn't sound credible.

[Korat Kiwi]

Hey Lou, are you always this argumentative? 

 

,Seems like no matter what anyone says you'll always take the opposite point of view. 

 

I suppose it generates a form of conversation for you. 

[Liverpool Lou]

7 hours ago, Robert Tyrrell said:

sometimes the tax is nearly doubled or more to import products RIDICULOUS !!!!

"RIDICULOUS !!!!" 

Yes, you are being ridiculous.

Which taxes have been "doubled or more" and on which products?

[Liverpool Lou]

5 hours ago, Mavideol said:

this will affect China (Chinese goods)  they will not allow that, lazada, shopee, aliexpress (just to mention a few) will be affected

China won't allow it?  Nonsense.

[Liverpool Lou]

41 minutes ago, JensenZ said:

This new policy will be a real nuisance as people will need to travel to Mail Centers to pay 100 baht or less VAT on packages under 1500.

No, it will not, the policy already exists for B1500+ items, and items are held, and charges paid, at the local post offices for the delivery area of the addressee.

[Bday Prang]

6 hours ago, Paul Henry said:

Already many imported food items are way to expensive compared to Thailands neighbours. The Thai Govt really knows how to attract tourists and expats.WELL DONE.

             They actually do know how to attract tourists and expats, Millions upon millions of tourists every year reportedly, and I'm guessing hundreds of thousands of expats. I'm no expert on tourism but as a lay observer and based on what I've seen at the airports  I'd say they are nearing capacity so I would imagine that in their minds  they  think they are doing ok. 

             They are probably not too concerned about  the relatively  few tourists / expats who can't exist here without their home comforts, "essentials" which they now consider unaffordable due to a 7% price increase.

[Liverpool Lou]

16 minutes ago, Korat Kiwi said:

Hey Lou, are you always this argumentative? 

 

,Seems like no matter what anyone says you'll always take the opposite point of view. 

Isn't it odd that if I dispute something, or express a differing opinion, it is always categorised as "being argumentative"?  Are we all supposed to have the same view here and agree with all the posts even when so many are, clearly, inaccurate or nonsense?

[JensenZ]

Just now, Liverpool Lou said:

No, it will not, the policy already exists for B1500+ items, and items are held, and charges paid, at the local post offices for the delivery area.

What will not? You're confused. I know the current process for items over 1500 - you go to the Mail Center to pay your duty/VAT.

 

When/if the new policy is implemented...

 

You will need to go to a mail centre to pay the VAT on items under 1500 baht, which currently you don't have to pay.

 

Where else would you expect to pay it? To the mailman?