Thai gov. to tax (remitted) income from abroad for tax residents starting 2024 - Part II

[mokwit]

I know it is standard practice to include freight cost in duty calculations BUT:

Please advise on whether it is customs policy to charge VAT on the amount of import duty paid. It seems to be DHL policy and that is my problem - my experience over 16+ years in Thailand is that there is ALWAYS a problem with customs with packages sent DHL but not with e.g.. UPS. If something is sent DHL the MAXIMUM duty of 60%+ always seems to be applied EVEN on NON DUTIABLE items like books (my ACTUAL EXPERIENCE). Normally it is DHL? NO deal but this one slipped through.

e.g. if value of Goods and freight was Bt 10,000 and duty payable was for example Bt10,000 would I have to pay 7% VAT on that Bt10,000 duty rather than just the Bt10,000 value of the goods i.e would I pay 7% of Bt10,000 goods value i.e. Bt 700 or 7% of Bt10,000 goods value and 7% of Bt 10,000 duty value Bt 1,400 in this example

[p_brownstone]

VAT is calculated on the C.I.F. value PLUS the amount of Import Duty charged by the Customs Department.

Patrick

[glegolo]

quote I know it is standard practice to include freight cost in duty calculations BUT:

Please advise on whether it is customs policy to charge VAT on the amount of import duty paid

unquote

It is a common rule amongst all countries to calculate the very same way.

- The duty, if applicable, is calculated on the CIF value (value of goods+insurancecost+freightcost)

- The VAT is calculated on THAT said value + the amount of the duty.....

Best Regards

Glegolo

[mokwit]

Ok thanks Patrick, Glegolo . It makes some sense - if I buy something in a shop the VAT is charged on the retail price which would include import duty, (+retail markup etc).

Still warning everybody about DHL even though they are seemingly correct with this - in the past they tried to charge me duty on a non dutiable book and wasted a lot of my time persistently re invoicing and even visiting me.

[DonaldBattles]

You may rest assured that they charge you what they want to for duty. I have always been convinced that international courrier services have the duty run up and pay the clearing people at least half of it and then some comes back to them. My advice is not to buy anything that is shipped by courrier. If you go through the post office by express international mail it takes a little longer but generally no hassles.

[mokwit]

You may rest assured that they charge you what they want to for duty. I have always been convinced that international courrier services have the duty run up and pay the clearing people at least half of it and then some comes back to them. My advice is not to buy anything that is shipped by courrier. If you go through the post office by express international mail it takes a little longer but generally no hassles.

Exactly my suspicion over the years and exactly the course of action I have generally taken. generally I only import non duty items and DHL tried to stuff me for duty on that in the past. As far as I can tell the correct duty is 30% MAX for this item or maybe exempt but because I used DHL I am being extorted for 60%. STAY AWAY.

[ericthai]

You may rest assured that they charge you what they want to for duty. I have always been convinced that international courrier services have the duty run up and pay the clearing people at least half of it and then some comes back to them. My advice is not to buy anything that is shipped by courrier. If you go through the post office by express international mail it takes a little longer but generally no hassles.

Exactly my suspicion over the years and exactly the course of action I have generally taken. generally I only import non duty items and DHL tried to stuff me for duty on that in the past. As far as I can tell the correct duty is 30% MAX for this item or maybe exempt but because I used DHL I am being extorted for 60%. STAY AWAY.

Yes, Dont use DHL or Fed-Ex, best is to use the post office. Every time i used DHL or Fed-ex or UPS I have had problems use the post office most times i dont have to pay anything, I have sent as gifts and no questions asked. Only one or two times has teh post office asked me to come down and pay a small fee after I open in front of them. (fee has been 200 or 500B, most likly going into their pocket.)

[mokwit]

You may rest assured that they charge you what they want to for duty. I have always been convinced that international courrier services have the duty run up and pay the clearing people at least half of it and then some comes back to them. My advice is not to buy anything that is shipped by courrier. If you go through the post office by express international mail it takes a little longer but generally no hassles.

Exactly my suspicion over the years and exactly the course of action I have generally taken. generally I only import non duty items and DHL tried to stuff me for duty on that in the past. As far as I can tell the correct duty is 30% MAX for this item or maybe exempt but because I used DHL I am being extorted for 60%. STAY AWAY.

If you have to use a courier use UPS. What they have done is set up a separate dedicated customs clearance area. You will pay duty but it will be the correct duty. I reiterate avoid DHL at all costs - I don't think you pay maximum duty with DHL due to incompetence or indifference to customers.

Yes, Dont use DHL or Fed-Ex, best is to use the post office. Every time i used DHL or Fed-ex or UPS I have had problems use the post office most times i dont have to pay anything, I have sent as gifts and no questions asked. Only one or two times has teh post office asked me to come down and pay a small fee after I open in front of them. (fee has been 200 or 500B, most likly going into their pocket.)

[p_brownstone]

Courier Companies - any Courier Company - has absolutely no incentive to, or interest in, disputing Import Duty with the Customs Department here in Thailand.(To be realistic, why should they - it simply gives them extra work for which they will receive no extra payment).

They will accept whatever the Customs Department decides to charge and pass it on to you.

If you Import regularly, find a reliable Customs Clearing Agent and use them; even if an item is sent from overseas by a Courier Company you can arrange for all the Import Documentation to be handed over to your Clearing Agent here in Thailand and they will arrange all the formalities on your behalf - including trying to ensure that the item Imported is classified under the correct International Tariff Code for Duty purposes.

Patrick