Thailand’s Customs Department has confirmed it will proceed with a major policy change, abolishing the country's "de minimis" rule and imposing import duties on all e-commerce goods, including those valued under 1,500 baht (approximately $40 USD), starting January 1, 2026.
This move marks the second phase of a government plan to level the playing field for domestic businesses, which have long struggled to compete with a flood of low-cost, tax-free products from foreign online sellers.
For years, goods imported into Thailand with a declared value under 1,500 baht were exempt from both import duties and Value-Added Tax (VAT). This exemption, while popular with consumers, was heavily criticized by local small and medium-sized enterprises (SMEs). Thai-based businesses are required to pay 7% VAT on their products, placing them at a significant price disadvantage against foreign competitors on platforms like Shopee, Lazada, and TikTok.
The government began closing this loophole in July 2024, when it started collecting the 7% VAT on all low-value parcels. This measure was extended and is set to expire on December 31, 2025.
The new policy, effective January 1, 2026, goes a step further. It will not only continue the 7% VAT but will also add import duties on top of it for all goods, regardless of their low value.
According to Phantong Loykulnanta, Director-General of the Customs Department, the policy is part of the government's "Quick Big Win" framework.
The department is actively coordinating with major e-commerce platforms to ensure a smooth transition. Officials are scheduled to meet with representatives from Shopee and Lazada to discuss the operational procedures. The plan will require these platforms to declare the import value and tariff classification for each item, allowing customs officials to accurately assess the applicable import duties.
The government anticipates this new measure will be a significant revenue generator, projecting an additional 3 billion baht (approximately $81 million USD) annually. This is based on an estimated 30 billion baht in value for low-cost goods that were previously imported tax-free.
In the long term, the department has indicated it plans to amend laws to create a more convenient "flat-rate" system, where each low-value parcel would be taxed at a single, predetermined rate, simplifying the collection process for the millions of parcels that enter the country each year.
07 Nov, 2025
