File photo for reference only

 

In a significant policy shift, Thailand's Customs Department announced today that starting January 1, 2026, all foreign goods sold online will face an import duty if valued at more than 1 baht. This move will end the current exemption for items priced below 1,500 baht, which will expire at the end of this year. The introduction of this duty, alongside the existing Value Added Tax (VAT), is predicted to generate at least 3 billion Thai baht annually for the government.

 

The policy change arises from the observation that foreign goods imported through various platforms and priced below 1,500 baht total over 30 billion baht per year. Director-general of the Customs Department, Panthong Loikulnan, stated that failing to collect any duties gives an edge to foreign goods over Thai businesses, impacting local producers, especially SMEs. Numerous countries, including the United States, have already scrapped the de minimis threshold to prevent tax evasion and to protect domestic markets.

 

The new system will mainly use online platform data for verification processes, with the possibility of additional random inspections. Starting November 7, the Customs Department will expedite negotiations with major e-commerce platforms like Shopee and Lazada to directly link sales and import data. This collaboration aims to ensure the efficient collection of taxes.

 

“I believe that if we delay this process, we will be at a disadvantage because all countries are beginning to see the same problem: domestic sellers pay taxes, but foreign goods are imported without paying anything,” Panthong remarked. Additionally, Panthong proposed a long-term solution involving a "lump-sum tax" that would set a flat rate of 20-30% for all imported goods. Although simplifying the tax process, implementing such a policy would require legal amendments and time, reported Thai Newsroom.

 

The move does not violate any Free Trade Area (FTA) agreements or other international trade pacts. Thailand continues to operate within its existing legal framework, with similar tax structure reviews happening globally, including in the US and major Asian markets. By recalibrating duties and taxes on imported products, these adjustments aim to protect domestic industries and maintain economic balance.

 

This strategic change underscores the need to maintain a level playing field for Thai businesses while adapting to the growing e-commerce sector. The government’s approach aligns with global trends, ensuring fair competition and bolstering domestic economic stability in a rapidly evolving market landscape.

 

Key Takeaways:

 

• Import duty on foreign online goods from Jan 2026, starting at 1 baht.
• Expected to generate 3 billion baht annually for the Thai economy.
• Major platforms will share sales data for accurate tax collection.

 

Related story:

Thailand Integrates Online Sales into VAT System; New Measures Announced

 

  Adapted by ASEAN Now from Thai Newsroom 2025-11-06

 

 

Just what everyone needs....yet more taxation !   👎

What level of import duty 7%? Will that end all cheap imports from China?

5 minutes ago, henryford1958 said:

Will that end all cheap imports from China?

 

There's no alternative so things will carry on as they are. That, or the Chinese government will pressure the Thai government for an exemption. 

3 minutes ago, flaming dragon said:

 

There's no alternative so things will carry on as they are. That, or the Chinese government will pressure the Thai government for an exemption. 

China gets away with so much.  

Just now, Mike_Hunt said:

China gets away with so much.  

 

Look at their influence in the region.  They make all of our stuff. The Thai government has a spending problem and needs a vehicle to pay for it. 

We're ALREADY paying exorbitant rates for all goods imported. Who is charging that? Where is that money going? How will adding a tax on TOP of a tax be good for business?

 

Are they trying to copy the new US business model? That's failing miserably. BAD idea, folks.

39 minutes ago, johng said:

Just what everyone needs....yet more taxation !   👎

Welcome to the real world

One of those rare times government decision makes some sense. If Thai merchants have to pay tax, but importers don't, that gives unfair advantage

If this makes something like  a level playing field, that would be a good thing

Thailand compares themselves with the USA.... but they don't like to work for this tax as the online platforms has to give the information... And than the stupid quote that the domestic sellers pay taxes... the sellers don't pay taxes the buyers pay taxes...and imported goods are very high taxed already so it will be more expensive... Think about wines or other products...Even in 1 year time Chabaa fruitjuice has risen from 59 THB to 84 THB.. and the Government wondering why the economy is going down... Of course make everything more expensive and the buying will go down.. Normal in the economy but the Government has no clue, never studied for anything

Isn't vat added by the platform company, we pay them not the supplier. 

4 hours ago, webfact said:

The introduction of this duty, alongside the existing Value Added Tax (VAT), is predicted to generate at least 3 billion Thai baht annually for the government.

...on the backs of that segment of the population who can least afford it. They should raise the VAT on luxury good to generate their 3 billion - or - rein in government spending.

Idiots. It will only result in less sales. Nobody wants to deal with taxes when ordering.

Most countries have followed this path. In truth they didn't want to simply because of the cost but these days with computerised payments etc and the massive business of foreign online sales it is unavoidable

So, I can sense something coming.

 

All Chinese products will cost 1 baht with higher shipping cost.

 

There is always a loophole people will exploit.

 

If not that, something else

4 hours ago, Emdog said:

One of those rare times government decision makes some sense. If Thai merchants have to pay tax, but importers don't, that gives unfair advantage

If this makes something like  a level playing field, that would be a good thing

 

Sir quit drinking the Kool-aid its rotting your brain.....

 

Thailand's manufacturing base is tiny.....Very Very small except for basic stuff.....Almost EVERY THING  in Thailand is imported from somewhere else...

 

This tax will do almost nothing to help Thailand....It will only make small purchases cost more.

 

 

10 minutes ago, redwood1 said:

 

Sir quit drinking the Kool-aid its rotting your brain.....

 

Thailand's manufacturing base is tiny.....Very Very small except for basic stuff.....Almost EVERY THING  in Thailand is imported from somewhere else...

 

This tax will do almost nothing to help Thailand....It will only make small purchases cost more.

 

 

Thailand's imports of goods and services represented

68.13% of its GDP in 2022, while its exports were slightly lower at 65.79%. 

its the sensible thing to do

6 hours ago, Mike_Hunt said:

China gets away with so much.  

Face it: because they do it so well!

 

This duty sounds like Trump's tariffs to me. We would be buying these products from abroad if they were manufactured or even sold in Thailand. Warranties, returns, credit in the Kingdom--fuhgeddaboutit!

 

"all countries are beginning to see the same problem"--right, can't stand competition so bash the most defenseless: the end consumer.

It will be interesting to see how this works out. Most countries have a small threshold as to deal with low priced items as it isn't worth the administrative cost. They expect the online platforms to share data in order to facilitate tax collection, but who will pay the taxes? A small Chinese exporter? No. The recipient of the goods getting a bill in the post? Don't think so. Customs opening every package purchased on Lazada, Temu, shopee and Tiktok? Uneconomical.

 

Can't wait to find out the answer!

 

7 hours ago, HappyExpat57 said:

US business model? That's failing miserably

 

The shocking part is that it isn't failing badly in the near term, which is why people like Klugman have gone mute.  Long term it could cause problems because the Chinese manufacturers are already on thin margins and can't absorb increased expenses. 

 

There is much talk about 'finding other markets', especially from countries like Canada, but the truth is that the supply chains are deeply entrenched and the US is the world's biggest customer.  Sorry to digress but the threads of international trade are all woven together.

8 hours ago, webfact said:

This move will end the current exemption for items priced below 1,500 baht, which will expire at the end of this year.

I thought this has already started.

I'm confused.

Does this mean they'll just add the tax to online orders shipping from China

(OR)

will they report the sales under our ID requiring us to file Thai taxes to pay later?

 

Also, what is the tax rate? 

16 minutes ago, Jingthing said:

I'm confused.

Does this mean they'll just add the tax to online orders shipping from China

(OR)

will they report the sales under our ID requiring us to file Thai taxes to pay later?

 

Also, what is the tax rate? 

 

I thought this tax was already in operation. I know I bought a book from South Africa several months ago (rare, used and not available in Thailand) and instead of shipping it to my PO Box it had to go to my street address, where I had to pay the Fedex delivery person 70 baht in customs tax. I've never had to pay a tax on books before, and I order them all the time from the US and UK.

"The move does not violate any Free Trade Area (FTA) agreements or other international trade pacts."

1 minute ago, Jingthing said:

I'm confused.

Does this mean they'll just add the tax to online orders shipping from China

(OR)

will they report the sales under our ID requiring us to file Thai taxes to pay later?

 

Also, what is the tax rate? 

 

The de minimis exemption (≤ 1 500 THB) disappears, meaning all imports must now be declared for tax by which for example sellers selling cheap fakes become much more easy traceable. But FTA status still applies — and that’s the key point. Because Thailand and China are both members of the ASEAN–China Free Trade Area (ACFTA) and the RCEP agreement. So the only new cost after 2026 for Chinese goods under FTA origin is simply the 7 % VAT, which now applies to every parcel, even cheap ones that were previously untaxed.

 

It’s import VAT charged at the border. You will have to pay it during checkout or just before delivery before being able to get your hands on the goods.

 

USA is not a FTA-related country, so the 7% VAT goods < 1 500 THB will be raised with the applicable percentage of import duty. I use the term "applicable percentage" here. Actually the country of origin applies here. So, when the product you order in the USA was made in China and you can prove it then officially no import duty needs to be paid.

 

 

 

 

 

 

 

 

Could mean all the Chinese counterfeit goods become no longer available????

Isn't this exactly what the Trump administration did recently - drop the de minimus exemption on low value imports to the US? But does this mean 7% added across the board on low value imports to Thailand, or will there be some complicated item by item rate? A lot of paperwork. Will the Thai Post refuse to become a receiver (third party) to avoid all of that? So courier companies would have to handle it all? More trouble than it's worth for them too?

8 hours ago, HappyExpat57 said:

We're ALREADY paying exorbitant rates for all goods imported. Who is charging that? Where is that money going? How will adding a tax on TOP of a tax be good for business?

 

Are they trying to copy the new US business model? That's failing miserably. BAD idea, folks.

indo not think this will effect the foreigner in Thailand. A few extra baht buying something is what we are used to anyway. But to the Thai, it will mean either reduced spending by the people buying things or those buying and selling will lose in sales. Either way, it is not a very smart move for the Thai people. 

3 hours ago, PingRoundTheWorld said:

Idiots. It will only result in less sales. Nobody wants to deal with taxes when ordering.

 

Exactly, this is why I only ever order internationally from Amazon US export sales.

 

Because they handle everything and somehow either act directly or indirectly via a partner as the import agent on your behalf. You still pay tax on goods that require it - which is most things except computer hardware I believe but it's included in the quoted price so you just make the order, click checkout, pay and you're done.

If there's some other supplier that ships directly to Thailand even through Amazon then you're on your own when it comes to the tax and if you don't have an import license as a registered import company then you're getting hit with a whole different tariff than when an agent handles it.

 

7 hours ago, Emdog said:

One of those rare times government decision makes some sense. If Thai merchants have to pay tax, but importers don't, that gives unfair advantage

If this makes something like  a level playing field, that would be a good thing

 

I buy things on Shopee or Lazada that come from China because I can't buy them in Thailand. I'm not sure how the Thai merchant is going to benefit from this change, if they don't stock or supply the goods I want.

 

 

3 hours ago, PingRoundTheWorld said:

Idiots. It will only result in less sales. Nobody wants to deal with taxes when ordering.

 

Yes. It's the trial balloon period, (rather like the TRD Por.161 & 162 which is still as clear as mud, and which saw TRD revenues drop by THB22 billion, presumably some of it related).

 

 

42 minutes ago, Jingthing said:

I'm confused.

Does this mean they'll just add the tax to online orders shipping from China

(OR)

will they report the sales under our ID requiring us to file Thai taxes to pay later?

 

Also, what is the tax rate? 

 

You're being far too sensible, expecting the "announcement" in the press to be a) reliable or b) factual. As I said, wait till the consequence kicks in, and the rule of retraction comes in.