On 20 June 2024 Customs Department Notification No.116/2567 was gazetted, ending the customs import duty exemption for goods valued at not more than 1,500 Baht, and thereby ending the VAT exemption for such goods.

The Thailand VAT Law

Under ​Section 77/2 of the VAT law, imports of goods are transactions subject to value added tax.

But whilst imports of goods are transactions subject to value added tax Section 81(2)(c) of the VAT law specifically exempts from VAT:

• Imports of goods exempted from import duty under the customs law.

The Customs Department Notification No.116/2567*

On 20 June 2024, Customs Department Notification No. 116/2567 was gazetted, prescribing as follows:

As the government has a policy to address the unfair competition between the import of low value goods of foreign sellers that are not subject to VAT and the domestic sales of low value goods by Thailand sellers that are subject VAT, the Director-General of the Customs Department with the approval of the Finance Minister, notifies as follows:

1. Imports of goods exempt from import duty are goods valued at no more than 1 baht,
2. This Notification shall be in force for the period of time beginning 15 days after its publication in the Royal Gazette to 31 December 2024, and
3. The Customs Department Notification No.191/2018 issued on 31 Jul 2018 (which prescribed the exemption for goods valued at no more than 1,500 Baht) shall not apply for the period this Notification is in force.

* As gazetted on 20 June 2024 and applying from 05 July 2024 to 31 Dec 2024, after which a permanent law (yet to be enacted) is expected to apply from 01 Jan 2025.

VAT Exemption for Goods Less Than 1,500 Baht

Accordingly, upon the ending of the customs import duty exemption for goods valued at not more than 1,500 Baht, those goods then lose their tax exemption status under the VAT law, and thereby become subject to VAT on import at the current standard rate of 7% VAT as applies to imports of goods transactions.

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