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'Treasury' orders VAT collection on imported goods less than 1,500 baht through the platform, effective in May.

Vat

"Treasury" blocks overflow of imported goods Order Value Added Tax (VAT) to be collected on products worth less than 1,500 baht. Designate the platform to be the one to remit the tax. The draft law is expected to be enforced within May.


Mr. Chulaphan Amornvivat, Deputy Minister of Finance Revealed after today's Cabinet meeting (April 2, 2024) that the Revenue Department and the Ministry of Finance will proceed with drafting laws regarding the collection of Value Added Tax (VAT) on imported goods, without exempting products with a value of less than 1,500 baht. baht to solve problems and bring fairness to small and micro entrepreneurs in the country.


In the past, according to international trade agreements, the rules for cross-border shipping for products with a value of less than 1,500 baht were exempt from import duties and VAT to facilitate trade


“While in the process of drafting related laws It is believed that no later than May, VAT taxes will begin to be collected through online platforms that import products from abroad. To create a fair trade atmosphere Whether it is a domestic or foreign business operator, they must pay VAT at the same rate.”


Mr. Chulapan further said that the said mechanism is a mission assigned by the Prime Minister. Let's go take action. Emphasizing that in the next 2 months, we believe that there will be a trade and investment atmosphere that is standard and fair to all parties.


By collecting Value Added Tax on imported goods with a value of less than 1,500 baht, it is estimated on average that there will be approximately 18,000 million baht imported per year. Initially, it is expected that the government will be able to collect approximately 100 million baht in revenue and, most importantly, will create Fair to SME entrepreneurs in the country.


The law that will be enforced will be based on international agreements. In line with the tax collection mechanism of the Organization for International Economic Cooperation and Development (OECD) by collecting value added tax through the platform (Vendor Collection Model), allowing the platform to deliver the tax to the government. This is a mechanism that has begun to be enforced around the world to support the expansion of e-commerce.

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