Thailand Scraps Tax Exemption on Low-Value Imports to Level Playing Field
Customs Department partners with Lazada, Shopee, and TikTok Shop to tax all cross-border goods from the first baht, targeting 3 billion baht in yearly revenue
- Thailand is eliminating the tax exemption for imported goods valued under 1,500 baht, meaning all cross-border purchases will be taxed.
- The policy, effective January 1, 2026, aims to create a fairer market for domestic small and medium-sized enterprises (SMEs) competing with low-cost foreign products.
- Major e-commerce platforms like Lazada, Shopee, and TikTok Shop will integrate tax collection, adding import duties and a 7% VAT to the customer's bill at checkout.
- The government projects this change will generate an additional 3 billion baht in annual revenue.
Customs Department partners with Lazada, Shopee, and TikTok Shop to tax all cross-border goods from the first baht, targeting 3 billion baht in yearly revenue.
The Thai Customs Department has announced a landmark policy shift that will see all imported goods taxed from the very first baht, effectively ending the long-standing tax exemption for items valued under 1,500 baht.
The new regulations are set to come into force on 1 January 2026.
Phantong Loykulnanta, director-general of the Customs Department, confirmed that the "De Minimis Value" (DMV) threshold has been abolished.
The move is designed to provide a fairer environment for domestic small and medium-sized enterprises (SMEs) which have struggled to compete with a flood of low-cost, tax-free imports from abroad.
In a significant logistical move, the department has signed a Memorandum of Understanding (MoU) with five major e-commerce giants: Lazada, Shopee, TikTok Shop, Temu, and Shein.
These platforms have agreed to integrate tax collection into their checkout processes, meaning shoppers will pay the required duties and 7 per cent Value Added Tax (VAT) at the point of purchase.
"We have been in constant dialogue with these platforms to ensure a seamless transition," Phantong said. "For 97 per cent of shoppers, there will be no delay in delivery, as the tax is settled immediately via the application."
Revenue and Regulation Under the new brackets, goods valued below 1,500 baht will attract import duties of up to 30 per cent, depending on the category:
- Fashion and Footwear: Up to 30%
- Bags and Accessories: 20%
- Electrical Goods: 10%
The department estimates that the policy will generate an additional 3 billion baht in annual state revenue. In the previous fiscal year, the value of tax-exempt "small-parcel" imports exceeded 30 billion baht.
A Three-Dimensional Crackdown Beyond revenue collection, the partnership with digital platforms aims to protect the public.
The Customs Department will provide platforms with a "whitelist" of restricted goods.
Items requiring permits from the Food and Drug Administration (FDA) or the Thai Industrial Standards Institute (TISI) will be strictly monitored.
Furthermore, the platforms will use keyword-blocking technology to automatically remove prohibited items, such as e-cigarettes, from their listings.
"This is not just about tax; it is about social protection and ensuring that every product entering a Thai household meets our national safety standards," Phantong added.
