Photo courtesy of Bangkok Post

 

Thailand's Customs Department will begin taxing all imported e-commerce goods starting January 1. This move is aimed at addressing the challenges domestic SMEs face due to the competition from cheaper imported products. Previously, items priced below 1,500 baht were exempt from import duty and VAT, allowing for an influx of affordable goods from neighboring countries.

 

The change is seen as beneficial, according to Kiatanantha Lounkaew, an assistant professor at Thammasat University. He noted that while taxation can help level the playing field, it is not a complete solution to the challenges faced by domestic businesses. Thai e-commerce operators who distribute imported items might bear the increased tax burden, potentially impacting their business models.

 

To mitigate potential negative impacts on local sellers, the government is encouraged to implement policies that promote the use of domestic materials and the development of local brands. Kiatanantha emphasized the need for improving manufacturing standards and cost management to make Thai products more attractive to local consumers. This shift in focus could ultimately strengthen the local economy and reduce reliance on imported goods.

 

The upcoming tax change could also lead to strategic moves by foreign platforms, who might reroute goods to avoid increased taxation, thereby impacting Thai SMEs. Addressing these challenges may require robust strategies to ensure that domestic e-commerce remains competitive while also promoting local manufacturing industries.

 

Looking ahead, Thailand's government is expected to focus on supporting SMEs through the transition. Efforts may include revising policies to enhance product appeal and competitiveness in the local market. Monitoring the impacts of the new tax policy will be crucial to ensure it meets its goals without unintended consequences, reported Bangkok Post.

 

Key Takeaways

• Thailand will apply a new tax on all imported e-commerce goods from January 1.
• The policy seeks to support domestic SMEs but could challenge Thai online sellers.
• Government strategies to enhance local manufacturing standards are needed.

 

Related Stories

PM Orders Continued Support for E-Commerce Activity in Thailand

Thailand and China Launch Joint E-Commerce Training Program

 

  Adapted by ASEAN Now from Bangkok Post 2025-11-17

 

 

Businesses will not be affected as from 1500 THB there is a tax.. A real business that import goods will have much higher bills.. and besides that they will calculate the higher prices to the customers... Maybe Thai businesses will earn less even by this action of Thai tax greed.. many things are not available in Thailand and therefor there ism a need to import them..Things like real good chocolate, foreign cookies, or foreign cooking supplements and many more things.. It is  not only the cheap Chinese stuff

"We're the government and we're here to help." 🙄

10 hours ago, Lee65 said:

"We're the government and we're here to help." 🙄

You forgot to add 'Ourselves!"

14 hours ago, ikke1959 said:

Businesses will not be affected as from 1500 THB there is a tax..

That's not my reading of the 1st para. in the OP.

They should have called it a tariff instead of a tax.  Everybody knows tariffs are paid by the country that ships the products 🙄

16 hours ago, snoop1130 said:

The change is seen as beneficial, according to Kiatanantha Lounkaew, an assistant professor at Thammasat University. He noted that while taxation can help level the playing field, it is not a complete solution to the challenges faced by domestic businesses. Thai e-commerce operators who distribute imported items might bear the increased tax burden, potentially impacting their business models

They will pass-on the increase to the consumer, further pushing up prices to the public.

Nothing special. The IOSS system was introduced in European Union 3 years ago. In Thailand, the tax will be 7% VAT. Not a big deal. Business as usual!

24 minutes ago, Wuvu2 said:

They should have called it a tariff instead of a tax.  Everybody knows tariffs are paid by the country that ships the products 🙄

 

This is not an imports tariff.

 

This is VAT.

 

In Thailand, VAT is only 7%

 

Nothing to worry about. Business as usual.

38 minutes ago, mfd101 said:

That's not my reading of the 1st para. in the OP.

It is my understanding that the 1500 baht referred to the value of the consignment, rather than the item.

Stockists that import the product will have already paid the duty.

From AI

• Old policy: Goods valued at THB 1,500 or less were exempt from import duties.
• New policy (effective Jan 1, 2026):
  • The THB 1,500 exemption will be removed.
  • A 10% customs duty will be applied to all imported goods valued under THB 1,500.
  • Import duties and VAT will be collected on all foreign goods sold online.

16 hours ago, snoop1130 said:

• "will apply" 
• "seeks to support"
• "strategies to enhance"

blah blah blah blah blah blah

11 hours ago, Lee65 said:

"We're the government and we're here to help." 🙄

Yes, indeed, helping to ruin things, the same in many countries, they are not there for the people but only for themselves.

The typical academician's faulty authoritarian reasoning can be found in the original BP article (linked in the OP):

 

"If the government wants to fix the problem at its root, it must make Thai consumers want to spend on Thai goods ... ," he said.

 

17 minutes ago, NedR69 said:

17 hours ago, snoop1130 said:

• "will apply" 
• "seeks to support"
• "strategies to enhance"

blah blah blah blah blah blah

 

To avoid this AI slop, suggest reading the original BP article (linked in the OP).

20 minutes ago, sandyf said:

Import duties and VAT will be collected on all foreign goods sold online.

But not (I think) eproducts (eg ebooks) sold online. 

10 minutes ago, mfd101 said:

But not (I think) eproducts (eg ebooks) sold online. 

I would agree. I would see the term "goods" as being physical products.

I buy digital products online and there is no physical delivery address involved. All that could be used would be IP address or address of payment card, neither of which need be where you are.

Looks like a kind of tariff?

The times of "poor developing nation China", with all its low costs postal services, tax free etc  will be history per 1 Jan '26

21 hours ago, ikke1959 said:

Businesses will not be affected as from 1500 THB there is a tax.. A real business that import goods will have much higher bills.. and besides that they will calculate the higher prices to the customers... Maybe Thai businesses will earn less even by this action of Thai tax greed.. many things are not available in Thailand and therefor there ism a need to import them..Things like real good chocolate, foreign cookies, or foreign cooking supplements and many more things.. It is  not only the cheap Chinese stuff

 

Agreed. 1500 baht is less than €40. Can't get much more than cheap plastic and rip-offs for that usually.

 

I wonder if this will impact the special tea I order from Germany which is far more expensive. Consignments usually worth well over a hundred euros. It comes via DHL/Thailand Post so I suspect I always paid import duty in the delivery charges anyway. They've certainly never bothered me for customs duty until now

This is targeting vendors like AliExpress, temu, and shopee or lazada(if the product is imported for your order).

It is complete BS that this to protect Thai businesses.  Thai businesses cannot make any of the stuff I import from China and no one stocks most of it here.  Thai sellers have shop fronts on Lazada and Shopee and get the products drop shipped from China.  So they will be affected.  

 

Since so much is bought this way, the impact will be inflationary.

So long, Labubu! We'll miss you ;-(

On 11/18/2025 at 2:17 AM, mfd101 said:

That's not my reading of the 1st para. in the OP.

Yes, fist sentence says it all:  will begin taxing all imported e-commerce goods starting January 1.

On 11/18/2025 at 9:00 AM, sandyf said:

It is my understanding that the 1500 baht referred to the value of the consignment, rather than the item.

Stockists that import the product will have already paid the duty.

From AI

• Old policy: Goods valued at THB 1,500 or less were exempt from import duties.
• New policy (effective Jan 1, 2026):
  • The THB 1,500 exemption will be removed.
  • A 10% customs duty will be applied to all imported goods valued under THB 1,500.
  • Import duties and VAT will be collected on all foreign goods sold online.

Does this include books?

2 hours ago, placnx said:

Does this include books?

I suspect that would depend on if they are physical or digtal.

Over the last year or so there has been a lot of talk over the exemption for goods under 1500 baht, think it was last year in May there was talk of adding the VAT. Some said it happened but not for me.

It is all a bit confusing as a couple of years ago I bought a 22 inch TV for about 2500 baht that came from  China. Remember it well as I had to place the order 6 times  to get a delivery, first 5 orders were cancelled by the sellers due to a parts shortage.

When it finally arrived there were no additional charges applied over and above the lazada price.