All imported goods now face 7% VAT

[PeteC]

All imported goods now face VAT.

https://www.bangkokpost.com/business/ge ... w-face-vat

Following a mandate from Prime Minister Srettha Thavisin, the government looks set to impose a 7% value-added tax (VAT) on imported goods valued from one baht up, commencing in May.

Goods sold for less than 1,500 baht per parcel and imported to Thailand are currently exempt from VAT.......

[buksida]

VAT on imports sent via post starts in May
The Customs Department is scheduled to commence the collection of value-added tax (VAT) for imported goods sent through postal services, regardless of the value of the goods, starting in May.

According to finance permanent secretary Lavaron Sangsnit, imported goods currently sent via postal services are exempt from import duties and VAT if the importers declare the cost, insurance and freight (CIF) value of each item as less than 1,500 baht apiece.

However, low-priced goods from China are flooding the market, creating an unfair advantage as domestic producers are subject to taxes.

To ensure fair trade practices, the Finance Ministry plans to collect VAT for imported goods sent via postal services irrespective of their value, while maintaining the exemption from import duties.

https://www.bangkokpost.com/business/ge ... rts-in-may

Amazed nobody has commented on this, it will affect all purchases from Lazada that are not local. That said, stuff may still work out cheaper from China ... got a feeling this is a knee-jerk reaction to the elephant pants fiasco.

[404cameljockey]

Amazed nobody has commented on this, it will affect all purchases from Lazada that are not local. That said, stuff may still work out cheaper from China ... got a feeling this is a knee-jerk reaction to the elephant pants fiasco.

Please tell me about the 'elephant pants fiasco'! Actually, I'm now guessing it was about elephant pants made in China? Not as sensational as I first hoped.

Concerning the VAT, it is what it is, no comment, thanks for advising the forum.

[buksida]

Yep, the Thai authorities and nationalists, who claim sole rights to these marvels of modern fashion, flapped when cheaper elephant pants from China started flooding the markets.

[KhunLA]

No real surprise there, as enjoyed tax free for so long and actually surprised it wasn't done years ago. Just hope the keep the VAT discount at 7% and not go to 10%.

They're learning from the west/G20s, tax everything you can, as much as you can, while you can.

Tax Spend Pocket, Tax Spend Pocket, rinse & repeat.

[Green Nomad]

Whenever I order from Lazada I look to see where it is coming from, most of the time if it says overseas it will be China and I don't order. I look for a local retailer or not at all. Mainly because of time constraints.

[KhunLA]

Whenever I order from Lazada I look to see where it is coming from, most of the time if it says overseas it will be China and I don't order. I look for a local retailer or not at all. Mainly because of time constraints.

Much improved from days past. Last item ordered, a camera, ordered 16th in the evening, and delivered on 23rd, afternoon.

[Big Boy]

I suppose the overseas items, which are usually cheaper, will no longer be so attractive once the tax is applied.

[Dannie Boy]

I’m sure the prices on Lazada will be transparent so it’ll be a case of weighing up the price and delivery time and decide - although some items are simply not available locally so it’s import (from China) or find the closest alternative.

[hhinner]

From this month items purchased from overseas will be charged Thailand VAT (7%), no matter how low the item value is.

I just received a small package from overseas delivered by the post office. It has a small sticker (in Thai) advising that 21 baht VAT is payable (customs declaration has value at USD10). However the postie didn't ask me for the money.

The package also has a bill attached addressed to the "head of the finance department" in the amount of 21 baht. This bill included a bar code and a qr code which enables electronic payment via bank app.

My question are:

Should the postie have collected this charge?

Should I pay this myself through bank app (or ignore it)?

Has anyone else received an overseas purchase this month and was VAT collected?

[HHTel]

Thailand has approved the collection of 7% value-added tax (VAT) on imported goods sold for less than 1,500 baht ($40.93) from July to December, a finance ministry official said on Friday. Imported goods sold for less than 1,500 baht are currently exempt from VAT in Thailand.Jun 21, 2024

After December, there will be a law change to allow the revenue department to continue collecting VAT on such products, the official told Reuters.

In February, Deputy Finance Minister Julapun Amornvivat said cheap imported Chinese goods priced less than 1,500 baht that were exempted from customs duties and value-added tax were hurting local manufacturers.

Prime Minister Srettha Thavisin has previously noted a trend of false declarations being made on cheap Chinese products in free trade zones, to avoid VAT, which he said should be imposed.

So it appears that it has to be paid. How to pay it is another question.

[PeteC]

It should be calculated and paid by the vendor who then charges it back to you when you place your order. The larger places like Amazon US do it already with anticipated customs duty and taxes.

[Big Boy]

I will watch with interest. I have a couple of items coming from China. 1 AliExpress and 1 Lazada. If my experience is any different, I will advise.

7% of the AliExpress order is 148฿, so quite a mark-up.

[PeteC]

In the past they've also charged VAT on the shipping cost, so don't be surprised if that's included.

[Big Boy]

It should be calculated and paid by the vendor who then charges it back to you when you place your order. The larger places like Amazon US do it already with anticipated customs duty and taxes.

Is that a definite 'should', or an 'if common sense prevails, should'?

The reason I ask

This bill included a bar code and a qr code which enables electronic payment via bank app.

Is this not one of the latest scams we are being warned about? False QR codes to pay money into the wrong bank (or the right bank if you are the criminal).

OK, small amounts, but they could soon build up.