The temporary measures were announced by Thai Customs. Now, almost all goods imported into Thailand will be subject to import duty and VAT, regardless of their value.
The temporary measures will be in effect from July 5 until the end of the year. Previously, all goods that were defined as low-value goods were exempt from duty and 7% VAT.
Under these conditions, import purchases of low-value goods from overseas suppliers are not subject to VAT and excise tax (in the case of excisable goods), while purchases of such goods from local suppliers are subject to these taxes. Thus, domestic goods and local business operators were put at a disadvantage compared to foreign goods and suppliers.
On June 4, 2024, the Thai Cabinet approved the introduction of VAT on imported goods worth more than 1 baht.