The Customs Department will start collecting of value-added tax (VAT) for imported goods sent through postal services, regardless of the value of the goods, starting in May.
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 regardless of their value, while maintaining the exemption from import duties.
Every year, more than 30 million parcel imports enter Thailand, with more than half claiming to be items with a CIF value not more than 1,500 baht.
Online platforms selling goods from China import a large quantity of low-priced goods in container loads, each containing tens of thousands of items.
This poses a significant challenge and requires a considerable amount of time if each box needs to be opened to assess taxes, as proposed by the Finance Ministry.
Customs officials are considering methods for tax collection on low-priced goods.
