Thailand Abolishes Low-Value Threshold on VAT on Imports

Effective July 5, 2024, Thailand has abolished the de minimis value threshold applied to value-added tax (VAT) for low-value goods imported into the country.

In a circular that Thailand Post submitted to the Universal Postal Union on changes to customs regulations and procedures for low-value goods, it said: "Thailand Post informed UPU member countries and their designated operators of the following changes to customs regulations for international postal items containing low-value goods sent to Thailand. Effective from 5 July 2024, the de minimis value threshold applied to value-added tax (VAT) will be abolished for low-value goods imported into Thailand. Such goods imported by post with a value between 1 and 1,500 baht, inclusive of freight and insurance charges, shall be exempted from import duties. Thailand Post kindly requests that designated operators to inform their customers of these changes."

News reports also indicate that from 5 July 2024, VAT (plus excise tax, if applicable to such goods) will be collected on goods valued from 1 THB (Thai Baht or roughly 25 cents). This change aims to increase fair competition between goods produced in Thailand and imported goods and will initially be effective until the end of this year. Currently, VAT and excise tax are exempt for imported goods valued at less than 1,500 THB. (Import duty is still exempt for imported goods valued at less than 1,500 THB.)