BANGKOK, THAILAND – Thailand scrapped its duty-free threshold for online imports from 1 January 2026, bringing all cross-border parcels under value-added tax and possible customs duties.
Tax-free small parcels abolished
The long-standing 1,500-baht tax-free limit for online imports was removed as the government moved to tighten revenue collection. Deputy government spokesperson Lalida Persvivatana confirmed the change, stating that all online imports were now subject to value-added tax and any applicable customs charges, regardless of value.
“Online imported goods are now subject to value-added tax and possible customs duties, regardless of the price.”
said Lalida Persvivatana, deputy government spokesperson.
7% VAT and higher consumer prices
The new rules meant that every item, from a T-shirt costing 200 baht to a watch at 5,000 baht, incurred 7% VAT, plus any import duty. Authorities expected clothing prices to rise by around 20 to 30 percent, while increases for other goods such as electronics, cosmetics and household items depended on their respective tariff rates.
Tax mostly included at checkout
Officials indicated that for more than 97% of imports the tax would be included directly in the online price. Consumers would therefore no longer need to pay extra at customs counters or fill in additional forms, and the process was intended to remain transparent and straightforward.
Major e-commerce platforms face tighter controls
The customs authority brought major online marketplaces into the implementation of the new regime. Platforms including Lazada, Shopee, TikTok Shop, SHEIN and TEMU were required to apply stricter checks on goods entering Thailand via their channels.
Standards enforcement and bans on illegal products
These platforms now had to filter out products that did not comply with Thai Industrial Standards (TISI) or with rules set by the Food and Drug Administration (FDA). The authorities also explicitly banned illegal products such as e-cigarettes, which had often been brought into the country through online channels.
Fairer competition and more consumer protection
The government framed the measure as delivering a triple benefit of higher tax revenue, fairer competition and stronger consumer protection. Domestic traders, especially small and medium-sized enterprises, had long argued they were unable to compete with untaxed low-cost imports. Officials said this competitive imbalance was now meant to be removed, while harmful or counterfeit goods would be kept off the market.
What online shoppers needed to check
For online buyers, the main change was the final price shown on the screen. Shoppers were advised to check at checkout whether the tax was already included in the total amount, as post-delivery customs issues and back payments were intended to become a thing of the past.
Open questions about impact on consumers
The reform closed a loophole that had been heavily criticised for years and was designed to strengthen domestic businesses, but it also meant noticeable price increases for everyday products purchased online. It remained unclear whether Thai merchants would ultimately gain significantly from the new system or whether the result would simply be higher prices across the board, with early consumer reactions still pending.