May 2024: B2C Sellers to charge VAT in checkout on low-value consignments of goods imported to consumers
Thailand is to impose VAT on low-value consignments of goods being imported directly to consumers. Any consignment at or below Baht 1,500 is currently VAT exempt. From 1st May 2024, it will attract VAT at the online checkout, and the sellers will have to register for VAT and submit returns and remittances. This will be through a simplified registration scheme with no registration threshold. In the case of failure to register, payment service providers (e.g. credit cards) would have to withhold the VAT.
Ending low-value consignment relief to level playing field on cheap Chinese imports
The measure is being introduced to boost government revenues and level the playing field for Thai-resident e-commerce sellers who must charge VAT on all sales to consumers. They have been losing out to Chinese sellers able to take advantage of the existing import threshold.
Similar measures already apply to Thai VAT on digital services since 2021.
The measure will extend to deemed supplier marketplaces. For VAT purposes, they will become the party responsible for VAT collections on behalf of their third-party sellers.
