Thailand has introduced a major overhaul of its tax rules for imported goods purchased online. As from 1 January 2026, imports of all overseas imported goods valued at THB 1 or more are now subject to both a 7% VAT and import duties. This marks the end of the longstanding exemption for ‑low-value‑ goods under THB 1,500 and a significant shift in Thailand’s e-commerce tax landscape.
The reform is designed to create a fairer competitive environment for Thai small and medium-sized enterprises, which have historically paid import duties while overseas sellers did not. By closing tax loopholes and reducing opportunities for under-‑declaration, the government expects to generate more than THB 3 billion per year in annual revenue. The move also aligns with global trends in low-value goods taxation, following similar approaches adopted by Australia, Singapore‑ and the EU.
Under the new system, tax collection processes differ depending on the delivery channel. For Thailand Post parcel shipments, Customs will assess taxes on the parcel and recipients can pay via a QR code or at the post office. Courier companies will prepay taxes on behalf of customers and collect reimbursement upon delivery of the goods. Meanwhile, Thailand Customs has entered into cooperation agreements with e-commerce platforms to collect VAT and import duty at checkout, streamlining the customer experience and improving compliance.
Consumers should expect higher final prices for low-cost goods purchased‑ from overseas sellers. At the same time, Thailand Customs aims to curb the flow of illegal or noncompliant goods by strengthening upstream checks and integrating data from e-commerce platform operators.
This policy represents a meaningful shift in Thailand’s approach to cross-border ecommerce taxation, aligning the country with global trends and enhancing fairness in the retail market. Businesses involved in ‑cross-border‑ e‑commerce activities should review and update pricing strategies and commercial models, plan customer communication, closely monitor and comply with Customs classification and documentation requirements, and determine whether any system integrations are needed to support upfront tax collection.
Ishan Shah
BDO in Thailand
The reform is designed to create a fairer competitive environment for Thai small and medium-sized enterprises, which have historically paid import duties while overseas sellers did not. By closing tax loopholes and reducing opportunities for under-‑declaration, the government expects to generate more than THB 3 billion per year in annual revenue. The move also aligns with global trends in low-value goods taxation, following similar approaches adopted by Australia, Singapore‑ and the EU.
Under the new system, tax collection processes differ depending on the delivery channel. For Thailand Post parcel shipments, Customs will assess taxes on the parcel and recipients can pay via a QR code or at the post office. Courier companies will prepay taxes on behalf of customers and collect reimbursement upon delivery of the goods. Meanwhile, Thailand Customs has entered into cooperation agreements with e-commerce platforms to collect VAT and import duty at checkout, streamlining the customer experience and improving compliance.
Consumers should expect higher final prices for low-cost goods purchased‑ from overseas sellers. At the same time, Thailand Customs aims to curb the flow of illegal or noncompliant goods by strengthening upstream checks and integrating data from e-commerce platform operators.
BDO Insights: What Businesses Should Prepare For
This policy represents a meaningful shift in Thailand’s approach to cross-border ecommerce taxation, aligning the country with global trends and enhancing fairness in the retail market. Businesses involved in ‑cross-border‑ e‑commerce activities should review and update pricing strategies and commercial models, plan customer communication, closely monitor and comply with Customs classification and documentation requirements, and determine whether any system integrations are needed to support upfront tax collection.Ishan Shah
BDO in Thailand
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