Ministry of Finance charges VAT on imported goods with the value from the first 1 baht

By definition, “import” means bringing goods into the Kingdom through Customs Clearance.

Also, “export” means to send goods out of the Kingdom to abroad through Customs Clearance.

In addition, another thing to know is that in terms of taxes, businesses can be divided into two categories: sales and services.

By definition, sales refers to the sale, payment, or transfer of goods, whether they receive benefits or remuneration.

The Revenue Department and the Ministry of Finance will revise the VAT charge on imported goods without exception for goods under 1,500 baht to solve the problem and ensure fairness to small and medium-sized enterprises in Thailand.

Over the past year, following international trade agreements, cross-border shipping rules were established for products with a value of less than 1,500 baht will be exempted from import tax and value-added taxes to facilitate trade and online forms of importing goods to create a fair trade environment for domestic and foreign entrepreneurs who are subject to the same VAT rate.

VAT will be levied on these goods from the first baht to ensure equality. Import duty is still under the Customs Department which will still be exempted under the agreements of the World Customs Organization. This is considered to conform to the same standards as other countries where import duties are exempted on goods that are not very high to reduce the burden on customs. However, VAT needs to be levied.

In the long run, the Ministry of Finance will have to amend the Revenue Code on the part of the Revenue Department which will take a long time, so it will be amended later. The details on tax collection are still waiting for the law to be effective first and must be pending confirmation. The details will be announced later, however, it will certainly be fair to all parties.

“However, the Ministry of Finance is currently revising to separate the two taxes from each other. The VAT can be levied from the first baht to ensure fairness in the tax system.”

On June 4, 2024, the Cabinet approved the Ministry of Finance’s issuance of a draft notice to temporarily levy VAT on imported goods worth 1 baht or more until 31 December 2024, to solve the unfair selling of goods between foreign sellers without VAT and sellers in Thailand who have to pay VAT.