BANGKOK, Thailand – The Thai government is set to enforce a major change in customs policy, initiating the collection of Value Added Tax (VAT) and import duties on all imported goods valued at 1 Thai Baht and above, effective January 1, 2026.
This measure eliminates the current duty-free threshold for small-value shipments and aims to establish fair trade competition while protecting domestic businesses from the adverse effects of untaxed, abnormally cheap imports.
Deputy Government Spokesperson Predwiwattana confirmed the mandate, which is expected to generate at least 3 billion Thai Baht in annual state revenue and significantly boost the competitiveness of local Thai entrepreneurs. The move is also intended to combat the pervasive issues of tax avoidance and under-declaration of goods.
To streamline the new taxation, the government has detailed specific collection procedures. For shipments arriving via Thailand Post, officials will assess the tax value on the exterior, allowing recipients at home to pay instantly via a QR code. Parcels requiring pickup may involve an additional 3–5 days for random inspections.
Meanwhile, express courier companies will pay duties upfront and collect reimbursement from the recipient upon delivery, with minimal change to overall transit times.
Furthermore, many online sales platforms are already integrating systems to collect VAT at the point of sale, simplifying the process for consumers and eliminating the complication of tax payments upon the item’s arrival. (TNA)
