Cabinet approves VAT on imported goods priced lower than 1,500 baht

TUESDAY, JUNE 04, 2024

Cabinet okays collection of VAT on cheap foreign goods bought online after SMEs complain of unfair advantage

The Cabinet on Tuesday approved a draft directive of the Finance Ministry for collecting VAT (value-added tax) on imported goods bought via online platforms that have values lower than 1,500 baht each.

A Government House source said the Finance Ministry proposed the draft directive for approval in a confidential and urgent agenda.

Currently, goods bought online from overseas are exempted from 7% VAT if their prices are lower than 1,500 baht. Thai small and medium-sized enterprises (SMEs) have complained that such low-priced goods from abroad, especially from China, have eaten into their businesses by taking advantage of being exempted from VAT.

The new directive would empower the Finance Ministry to collect VAT from the first baht of the price of imported goods purchased on online platforms.

Earlier, Deputy Finance Minister Julapun Amornvivat said the VAT collection on imported goods with prices lower than 1,500 baht would make it fairer to Thai SMEs.

At first, the Customs Department would take charge of collecting the VAT on goods with prices lower than 1,500 baht, Julapun said. The Revenue Department would later consult with operators of online platforms to have them collect the VAT and hand over the tax to the Revenue Department later.